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Record-keeping requirements

What suggestions do you have for how the record-keeping rules could be developed in the modernised tax administration?

Taxpayers are obligated to keep records for seven years after the end of the income year or GST period to which they relate. Further Inland Revenue can require records to be kept for an extra three years if an audit or investigation is being conducted or actively considered.

In response to the changes proposed in this and other Making Tax Simpler consultations, taking into account that Inland Revenue may have more access to information from interacting with business systems directly, the current record-keeping requirements could, in the future, be updated. Any changes would need to take account of other non-tax record-keeping obligations imposed on businesses.

Further analysis on the record-keeping requirements will form part of future consultations once key features of the modernised tax administration have been further developed.


Graham Brown
I have never seen the point of requiring records to be kept as a two step process, if the records can be destroyed after 7 years. Unless the audit takes up to 10 years to complete (unlikely) there is no benefit to the IRD. For the taxpayer this requirement should be clarified and definitive.

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7 months ago
Sandy Price
Need to have some flexibility in this regard. Many people do not understand the requirements. Transactions can be easily identified but not necessarily each individual receipt. Also what happens in the event of a dispute with someone holding records. Or misreporting of records. I would hope that someone genuinely wanting to sort a situation out would be able to do so (as shown in the diagram showing the hierarchy in compliance treatment)

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6 months ago
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