Is Your Tax House in Order? Inland Revenue Steps Up Enforcement in 2025

Inland Revenue has entered a new phase of tax enforcement—and for SMEs, the message is clear: proactive tax management is no longer optional.

Following Budget 2025, Inland Revenue has secured an additional $35 million annually to intensify compliance and debt recovery. With national tax debt reaching $8.5 billion, the agency is scaling up audits, data-driven investigations, and direct outreach to business owners. Already, audit volumes have surged 50%, uncovering hundreds of millions in undeclared tax.

What does this mean for you?

If your business has outstanding tax debt, delayed filings, or unclear governance structures, Inland Revenue is likely watching. They’re using payment provider data to identify unregistered GST activity, crypto income, and discrepancies in high-cash sectors like construction and retail. Businesses with multiple properties held across companies, trusts, and personal names are being contacted directly—and told to refinance or face escalated recovery.

How to Stay Ahead

Now is the time to take control. Inland Revenue encourages early engagement, voluntary disclosures, and structured repayment plans. Relief options exist for sole traders facing genuine hardship, but waiting for a knock on the door is no longer a viable strategy.

Smart businesses are:

• Leveraging tax pooling to smooth provisional tax
• Separating GST and PAYE from operating cash flow
• Implementing structured tax governance frameworks
• Using digital tools to track live tax positions
• Maximising deductions—from R&D credits to depreciation

At BEFA, we help clients navigate these pressures with finance solutions that preserve cash flow and support compliance. Whether you're restructuring debt, upgrading equipment, or simply need clarity on your tax position, we’re here to advocate for your business.

Let’s talk. Schedule a confidential consultation today and put your business on the front foot—before Inland Revenue puts you on theirs.