Salaries Tax outgoing & expenses

From the IRD Tax Guide:


"EVASION OF TAX - A CRIMINAL OFFENCE



CONSEQUENCE OF INCORRECT RETURN



All tax returns contain a declaration to the effect that the information returned therein is true, correct and complete. Understatement/omission of profits or income or submission of false information constitutes an offence.



Submission of an incorrect tax return without reasonable excuse is an offence carrying a fine of $10,000 and a further fine of treble the amount of tax which has been undercharged. The imposition of penalty may, however, be dealt with administratively by the Commissioner.



Submission of an incorrect tax return wilfully with intent to evade tax is a serious offence. On conviction, the maximum penalty is a fine of $50,000 plus a further fine of treble the amount of tax undercharged and to imprisonment for 3 years. The Court of Appeal of the High Court has warned that a defendant, once convicted, may be liable to immediate custodial sentence. "



You signed the form and made the declaration that the information contained in the return was true. Start digging out any receipts/evidence you can. The IRD is not obliged to disregard your "error".

IRD is not obiliged to disregard your "error", but they most likely will if the claim is only for $10,000. IF you have no legitimate receipts or perhaps have "misplaced" them, then just reply stating that you have not retained the requested receipts however the expenses consist of XXX, YYY and approximate amounts. IRD will usually disregard the request since you don't have the receipts, but will not proceed with any prosecution on the first "error". If you work in sales and marketing on commission basis where such outgoings are quite common, it is possible that IRD will accept the expenses without receipts.... but still unlikely.