Latest news with #SmallBusinessCashflowScheme
Scoop
4 days ago
- Business
- Scoop
Extra Funding To Support More Compliance Work
Press Release – Inland Revenue Along with the $29 million per year that was allocated in Budget 24, this is a significant funding boost and is recognition of what we do and the excellent results weve had so far this year,the Commissioner of Inland Revenue, Peter Mersi, … Inland Revenue (IR) has outlined how it will use increased funding in this year's budget to boost collection activities and invest more in tax compliance. Additional funding The Commissioner of Inland Revenue, Peter Mersi, says increased funding in this year's budget means the great majority of New Zealand taxpayers who meet their obligations can continue to be confident IR will find those who aren't. 'Budget 2025 also provides new additional permanent funding of $35 million per year for Inland Revenue to invest more in tax compliance and collection activities. 'Along with the $29 million per year that was allocated in Budget 24, this is a significant funding boost and is recognition of what we do and the excellent results we've had so far this year,' Peter Mersi says. 'In addition, the Government has agreed to continue $26.5m of funding that was set to end this year, and importantly, made it on-going. This means we can continue with a range of compliance and debt work, including around the Small Business Cashflow Scheme loans which are in default.' Return on Investment Peter Mersi says 'just like last year, IR is expected to return an additional $4 for every dollar invested in year 1, and $8 dollars from year 2. This is in addition to increasing the return from last year's compliance funding boost by $8 from 1 July. 'While we do that, IR also must maintain its base level of tax collection and debt reduction.' Plans for the funding Inland Revenue will use the additional funding to focus on new activities around things like: • further increasing audits and debt collection in areas of high risk and/or value • investigations into specific sectors such as property, organised crime, the hidden economy and trusts • improved use of data and intelligence to more quickly identify and target discrepancies and pursue debt • shifting from a manual to an automated process to collect data from third parties, such as banks. • investigating more targeted compliance activity measures. Inland Revenue will take on additional staff to deliver this work, as well as using our systems and technology in more effective ways. Third quarter result highlights • This year to 31 March 2025, we have assessed additional tax of $880.8 million from audit activity • The total number of IR-initiated liquidations this quarter (134) is 67.5% higher than the same quarter last year. • Our debt collection activities continue to result in increased cash collection, with $2,985 million collected in the year to date compared to $2,688 million for the same period last year. • The number of prosecutions initiated during this quarter has more than doubled. • Overseas-based student loan repayments increased by 43.9% compared to the same period last year. • Child support debt (as at 31 March 2025) is $930 million, 10% lower when compared to the same period last year.
Scoop
4 days ago
- Business
- Scoop
Extra Funding To Support More Compliance Work
Inland Revenue (IR) has outlined how it will use increased funding in this year's budget to boost collection activities and invest more in tax compliance. Additional funding The Commissioner of Inland Revenue, Peter Mersi, says increased funding in this year's budget means the great majority of New Zealand taxpayers who meet their obligations can continue to be confident IR will find those who aren't. 'Budget 2025 also provides new additional permanent funding of $35 million per year for Inland Revenue to invest more in tax compliance and collection activities. 'Along with the $29 million per year that was allocated in Budget 24, this is a significant funding boost and is recognition of what we do and the excellent results we've had so far this year,' Peter Mersi says. 'In addition, the Government has agreed to continue $26.5m of funding that was set to end this year, and importantly, made it on-going. This means we can continue with a range of compliance and debt work, including around the Small Business Cashflow Scheme loans which are in default.' Peter Mersi says 'just like last year, IR is expected to return an additional $4 for every dollar invested in year 1, and $8 dollars from year 2. This is in addition to increasing the return from last year's compliance funding boost by $8 from 1 July. 'While we do that, IR also must maintain its base level of tax collection and debt reduction." Plans for the funding Inland Revenue will use the additional funding to focus on new activities around things like: • further increasing audits and debt collection in areas of high risk and/or value • investigations into specific sectors such as property, organised crime, the hidden economy and trusts • improved use of data and intelligence to more quickly identify and target discrepancies and pursue debt • shifting from a manual to an automated process to collect data from third parties, such as banks. • investigating more targeted compliance activity measures. Inland Revenue will take on additional staff to deliver this work, as well as using our systems and technology in more effective ways. Third quarter result highlights • This year to 31 March 2025, we have assessed additional tax of $880.8 million from audit activity • The total number of IR-initiated liquidations this quarter (134) is 67.5% higher than the same quarter last year. • Our debt collection activities continue to result in increased cash collection, with $2,985 million collected in the year to date compared to $2,688 million for the same period last year. • The number of prosecutions initiated during this quarter has more than doubled. • Overseas-based student loan repayments increased by 43.9% compared to the same period last year. • Child support debt (as at 31 March 2025) is $930 million, 10% lower when compared to the same period last year.
Scoop
19-05-2025
- Business
- Scoop
Auckland Man Guilty In Serious Fraud Office Prosecution Over Attempted Multi-million Dollar Covid-19 Fraud
Press Release – Serious Fraud Office An Auckland man who tried to fraudulently claim millions of dollars through the Covid-19 wage subsidy scheme (WSS) and other government support schemes has been found guilty following a trial on charges brought by the Serious Fraud Office (SFO). Hun Min Im faced 91 charges related to his attempts to claim $1.88 million from the WSS, as well as from the Small Business Cashflow Scheme, COVID-19 Support Payments and Resurgence Support Payments. In total he attempted to claim $2.3 million and received almost $624,000. On Friday Mr Im was found guilty of 18 charges of obtaining by deception, and 16 charges of using a forged document. Just prior to the end of his trial, which concluded at the Auckland District Court on 13 May, Mr Im pleaded guilty to 54 charges of dishonestly using a document. Three obtaining by deception charges are yet to be determined. Mr Im submitted 42 WSS applications on behalf of eight companies and four sole traders, none of which were trading in New Zealand or had any staff. He forged signatures and used forged documents when incorporating companies, filed GST returns to claim refunds his companies were not entitled to, and sought a further $172,800 in Covid-19 subsidies from Inland Revenue that he was not entitled to. 'Mr Im's offending was deliberate and wide-reaching,' says SFO Director Karen Chang. 'He created a complex web of fake companies and forged documents which our expert teams spent many hours piecing together. He stole the personal information of his tenants and applicants who responded to fake job ads he placed online, to use as shareholders, directors and employees in his companies. 'Mr Im took advantage of public money that was intended to support people and businesses during a time of significant stress and uncertainty. Any money he received was used to fund his personal lifestyle, including an apartment and luxury vehicle.' Misappropriation of targeted Government funding is a key focus area for the SFO, particularly in times of emergency recovery. During such times the focus is on getting help to those who need it most, as quickly as possible. This urgency can create opportunities for those looking to exploit relief programmes. This case was referred to the SFO by the Ministry of Social Development (MSD) following its own initial investigations. Further work alerted SFO to possible fraudulent activity against other Government organisations. Ms Chang says, 'We want to recognise the cooperation and support provided by Inland Revenue, Police and the Companies Office to our investigation. This includes the Police Asset Recovery Unit, which restrained a property and vehicle following a referral from the SFO. The investigation was a great example of agencies working together to investigate abuse of public funds.' The SFO's Counter Fraud Centre (CFC) works closely with the public sector to support efforts to build resilience to fraud and ensure controls are in place to protect public funds. Last year the CFC released a new guide to Managing Fraud During Emergency Relief and Recovery which offers practical tools and principles to safeguard critical funding in times of crisis.
1News
19-05-2025
- Business
- 1News
Man guilty of 'deliberate and wide-reaching' wage subsidy fraud
An Auckland man has been found guilty of fraudulent attempts to claim millions of dollars through the Covid-19 wage subsidy scheme and other government support plans to fund his luxury lifestyle. Hun Min Im faced 91 charges brought by the Serious Fraud Office (SFO) relating to attempts to claim a total amount of $2.3 million from four Covid-era subsidies, receiving almost $624,000. Forty-two applications were submitted to the Covid-19 wage subsidy scheme on behalf of eight companies and four sole traders, with claims totalling $1.88 million. None of these entities traded in New Zealand or had staff. The rest of the claims were directed at the Small Business Cashflow Scheme, Covid-19 Support Payments and Resurgence Support Payments. Im forged signatures and used forged documents when incorporating companies, filed GST returns to claim refunds his companies were not entitled to, and sought a further $172,800 in Covid-19 subsidies from Inland Revenue that he was not entitled to. He was found found guilty on 18 charges of obtaining by deception and 16 charges of using a forged document, but prior to the end of the trial on May 13, he pleaded guilty to 54 charges of dishonestly using a document. Three charges of obtaining by deception were yet to determined. The money Im received was used to fund his lifestyle, including an apartment and luxury vehicle. The case was referred to the SFO by the Ministry of Social Development following its own initial investigations, with further work alerting SFO to possible fraudulent activity against other organisations. SFO director Karen Chang said Im's offending was "deliberate and wide-reaching". "He created a complex web of fake companies and forged documents which our expert teams spent many hours piecing together. "He stole the personal information of his tenants and applicants who responded to fake job ads he placed online, to use as shareholders, directors and employees in his companies." 'Mr Im took advantage of public money that was intended to support people and businesses during a time of significant stress and uncertainty. Any money he received was used to fund his personal lifestyle, including an apartment and luxury vehicle.' Misappropriation of government funding was a key focus for the SFO, particularly in times of emergency recovery, Chang said. Chang recognised the cooperation and support provided by Inland Revenue, police, and the Companies Office. "The investigation was a great example of agencies working together to investigate abuse of public funds."
Otago Daily Times
19-05-2025
- Business
- Otago Daily Times
Man guilty of trying to defraud Covid wage subsidy of millions
auckland_district_court.png Auckland District Court. File photo: RNZ A man who tried to fraudulently claim millions of dollars through Covid-19 wage subsidy schemes has been found guilty at the Auckland District Court. Hun Min Im faced 91 charges related to his attempts to claim $1.88 million from the Covid-19 wage subsidy scheme (WSS), the Small Business Cashflow Scheme, Covid-19 Support Payments and Resurgence Support Payments. In total, Im attempted to claim $2.3 million and received almost $624,000. He was found guilty of 18 charges of obtaining by deception and 16 charges of using a forged document while Im pleaded guilty to 54 charges of dishonestly using a document. Three obtaining by deception charges were still yet to be determined. Serious Fraud Office director Karen Chang said Im's offending was deliberate and wide-reaching. "He created a complex web of fake companies and forged documents which our expert teams spent many hours piecing together. He stole the personal information of his tenants and applicants who responded to fake job ads he placed online, to use as shareholders, directors and employees in his companies. "Mr Im took advantage of public money that was intended to support people and businesses during a time of significant stress and uncertainty. Any money he received was used to fund his personal lifestyle, including an apartment and luxury vehicle," she said. Im submitted 42 WSS applications on behalf of eight companies and four sole traders, none of which were trading in New Zealand or had any staff. He forged signatures and used forged documents when incorporating companies, filed GST returns to claim refunds his companies were not entitled to. Im also sought a further $172,800 in Covid-19 subsidies from Inland Revenue that he was not entitled to. The Serious Fraud Office was alerted to this case by the Ministry of Social Development after its own initial investigations, Chang said. "We want to recognise the cooperation and support provided by Inland Revenue, Police and the Companies Office to our investigation." "This includes the Police Asset Recovery Unit, which restrained a property and vehicle following a referral from the SFO. The investigation was a great example of agencies working together to investigate abuse of public funds."
