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.