Taxpayer found guilty of fraudulent activity, evasion penalties imposed for suppressed cash sales and GST

• Taxpayer is a company involved in restaurant business registered for income tax and GST
• Investigation found Taxpayer suppressed cash sales, under-reported GST and income tax
• Default assessment issued with evasion shortfall penalties
• Dispute raised by Taxpayer, referred to Tax Counsel Office for adjudication
• Main issues include under-reporting cash sales, offsetting costs without records, reassessment of GST, liability for shortfall penalty
• TCO decided Commissioner validly assessed Taxpayer, cash sales under-reported, no offset for costs without evidence, correct reassessment of GST and income tax
• Evasion penalties correctly imposed
• Legislative references to Tax Administration Act for preliminary issues
• Commissioner’s decision to assess without NOPA cannot be disputed by Taxpayer

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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