Inland Revenue is tightening tax oversight in the horticulture sector.

Inland Revenue has identified a number of common practices in the horticultural industry that pose a threat to the integrity of the tax system. Among the violations, the agency includes cash wage payments, as well as the use of complex schemes to conceal actual financial transactions. In particular, cases of creating fake invoices to misrepresent the nature of transactions have been recorded, which allows for the underpayment of GST (goods and services tax), PAYE (pay-as-you-earn tax), and other tax obligations. In such situations, the agency intends not only to adjust tax assessments but also to consider the possibility of prosecution.

As part of enhanced oversight, the tax authority is scrutinizing new GST registration applications from horticultural sector companies to identify organizations created solely for issuing fictitious invoices. If it is determined that a company is not engaged in actual taxable activity, registration will be denied. In addition, attention is being paid to compliance with schedular payment obligations, as well as the correct use of exemption certificates and individual tax rates.

The agency is intensifying its efforts to recover debts, using the full range of its available powers. Of particular concern is the failure to comply with GST, PAYE, and income tax obligations in the sector providing labor for horticultural needs. In the event that evidence of non-tax related violations is discovered, Inland Revenue is prepared to refer materials to the police, the Labour Inspectorate, or the Ministry of Business, Innovation and Employment (MBIE).

Statistics for the period up to June 30, 2026, show that Inland Revenue has opened about 130 investigations into industry businesses, during which tax discrepancies totaling 7.2 million dollars were identified. During the same period, three sector representatives received sentences of home detention on charges of tax evasion.