New Zealand Tax Agency Issues GST, Income Tax Decision Clarifying Shortfall Penalties for Suppressed Cash Sales

The New Zealand Inland Revenue April 12 issued Technical Decision Summary No. 24/07, clarifying tax evasion shortfall penalties for suppressed cash sales for GST and income tax purposes. The taxpayer operated a restaurant and was registered for income tax and GST. The Tax Agency determined that the taxpayer fraudulently suppressed cash sales and underreported GST and income tax. The Tax Agency reassessed income tax and GST and imposed the shortfall penalty. The taxpayer filed a Notice of Proposed Adjustment (NOPA), disputing the reassessments. The Tax Counsel Office found that: 1) the Tax Agency could make the reassessments without a NOPA; ...