Inland Revenue (IRD) released an update on 24 March 2026 confirming that it is stepping up its compliance work, and the construction industry is a key focus.
What’s happening?
From late March, if you’re in the construction sector, you may notice:
· More phone calls from IRD if you have outstanding tax
· Site visits starting from 30 March
· Increased follow-up on unfiled returns and unpaid tax
These visits are partly about education, but they are also about getting on top of outstanding debt.
What is IRD focusing on?
IRD is paying close attention to:
· GST debt
· PAYE (employee tax deductions)
A major concern is where businesses deduct PAYE from wages but don’t pass it on to IRD.
IRD has made it very clear that this is taken seriously and can lead to significant penalties and in some cases, prosecution.
What does an IRD “campaign” actually mean?
When IRD runs a campaign in an industry like construction, it simply means they’re taking a closer look across the board. Rather than waiting for problems to come up, they’ll be reaching out to more businesses, checking in on how things are being managed, and offering help where it’s needed.
For many tradies, this just means you’re more likely to hear from IRD, even if you’ve never had contact before. It’s also a bit of a nudge to get things up to date if you’ve fallen behind, while there’s still time to sort it out with support.
What does this mean for you?
If you have:
· Unfiled tax returns
· Outstanding GST or PAYE
· Existing IRD debt
Now is the time to act.
IRD has indicated it will take a firmer approach with businesses who continue to ignore their obligations however they are still open to working with those who engage early.
How we can help
Dealing with IRD can feel overwhelming, especially if things have fallen behind. The good news is, there are often more options available than you might think.
We regularly assist clients with:
· Negotiating repayment arrangements
· Reducing or remitting penalties and interest
· In some cases, negotiating core debt depending on the circumstances
· Bringing tax filings up to date and dealing with IRD on your behalf
Most importantly, we take the stress off you by handling the communication with IRD directly.
Don’t wait until it escalates
The earlier you act, the more options you have.
If IRD contacts you, or if you know things aren’t quite up to date, we strongly recommend getting advice as soon as possible. Waiting can limit your options and lead to more serious action.
If you’d like help navigating this, get in touch with us.
We’re here to support you and work towards the best possible outcome.