Yesterday IRD advised all Tax Agents that Inland Revenue is looking closely at real estate salesperson/agent customer groups.
There information suggests some of these customers are claiming private expenses and are not keeping logbooks or retaining other business records to support a deduction.
Real Estate has always been a high-risk industry with regards to this and I saw a few “interesting” cases when I worked there, not that I am ever allowed to disclose them, let’s just say there are some real estate agents that would never use.
What this means though, is that IRD will be sending letters to those Real Estate Agents (or their accountants) that they suspect of the above behaviours asking to provide proof of their expenses.
What does this mean for you? Well, if you are my client, do not be worried at all, if you are not and you do not have records, then its time to get on top of this before IRD comes knocking.
Because they will! I used to do it and know the drill .