Tax Fraud in New Zealand is an important concern for businesses, accountants and taxpayers as Inland Revenue (IRD) continues to investigate and prosecute fraudulent tax activities. A recent case involving more than $2 million in attempted tax and COVID-related fraud highlights the growing risks of identity theft, forged documents and misuse of myIR accounts. For New Zealand business owners, this case is a timely reminder to strengthen financial controls, protect sensitive information and maintain accurate tax records.

Introduction: Why the Latest IRD Tax Fraud Case Matters to NZ Businesses

Tax compliance and financial security remain important responsibilities for every New Zealand business.

A recent case reported by Inland Revenue (IRD) highlights the serious consequences of tax fraud, identity misuse and fraudulent access to government tax accounts.

On 4 November 2026, IRD announced that Auckland man Andrew Shipton, also known as Adrian Ngwun, had been sentenced to three years in prison for his involvement in a large-scale fraud against Inland Revenue.

The operation involved attempts to obtain more than $2 million through fraudulent tax and COVID support claims.

Although this case involved deliberate criminal activity, it also provides important lessons for legitimate businesses about protecting financial information, securing myIR access and maintaining accurate tax records.

For business owners, the message is clear: tax compliance is not just about filing returns on time. It also involves protecting financial information, monitoring account activity and maintaining reliable internal controls.

What Happened in the $2 Million New Zealand Tax Fraud Case?

According to Inland Revenue, two brothers were involved in a sophisticated fraud operation targeting tax and COVID-related support payments.

Nicholas Ngwun was identified by the court as the ringleader. He controlled at least 33 myIR accounts and attempted to obtain more than $2 million through fraudulent claims.

His brother, Andrew Shipton, assisted with setting up and verifying bank accounts using false identities and forged documents.

The operation involved several forms of fraudulent activity, including:

• Fraudulent COVID support applications.
• False GST returns and amendments.
• Fraudulent income tax returns and amendments.
• Misuse of personal and credit card information.
• Forged identity documents and proof-of-address records.

IRD reported that Nicholas had purchased personal and credit card information through dark web marketplaces and used it to make fraudulent claims for COVID support applications, GST and income tax returns.

What Were the Court Sentences?

The two brothers received separate prison sentences for their involvement.

Andrew pleaded guilty to four charges of receiving over $1,000 and 13 charges of using forged documents.

According to IRD, Andrew visited banks five times between February and May 2023, impersonating other individuals to establish and verify bank accounts. He subsequently made bank and ATM withdrawals totalling $28,000.

The case demonstrates the serious legal consequences associated with fraudulent tax claims and identity-related financial offences.

Source: Inland Revenue – Accomplice in Large Scale Fraud Sentenced.

How Does Tax Fraud Affect New Zealand Businesses?

Tax fraud is not limited to false tax returns. It can also involve identity theft, unauthorised account access, fraudulent bank account changes and misuse of business or personal financial information.

For legitimate businesses, these activities can create financial, operational and reputational risks.

1. Unauthorised Access to myIR Accounts

Businesses use myIR to manage important tax obligations, including GST, income tax and other Inland Revenue services.

If login credentials or authorised access are compromised, an unauthorised person may attempt to access sensitive financial information or make changes to an account.

Business owners should regularly review who has access to their myIR accounts and ensure that permissions are appropriate.

2. Fraudulent GST Returns and Tax Amendments

Accurate GST reporting is an essential part of New Zealand tax compliance.

Businesses should ensure that GST returns are supported by reliable accounting records, accurate transaction information and appropriate documentation.

Unexpected amendments, unfamiliar transactions or unexplained changes to tax records should be investigated promptly.

3. Identity Theft and Financial Information Misuse

The IRD case highlights how stolen personal information can be used to create fraudulent accounts and submit false financial claims.

Businesses should protect sensitive information belonging to directors, employees, suppliers and customers.

Access to financial documents should be restricted to authorised individuals, with appropriate processes for sharing and storing information.

4. Weak Internal Financial Controls

Businesses that do not regularly review financial transactions, tax submissions and account permissions may find it harder to identify unusual activity.

Clear approval processes, regular reconciliations and accurate financial reporting can help reduce the risk of unauthorised changes going unnoticed.

How Can Businesses Protect Their myIR Accounts?

Protecting your myIR account should be part of your wider financial and tax compliance process.

Here are practical steps New Zealand businesses should consider.

1. Enable Two-Step Verification

Two-step verification adds an additional layer of protection when accessing myIR.

Businesses should ensure that authorised users maintain secure verification methods and protect their login details.

2. Use Strong and Unique Passwords

Avoid using the same password across multiple platforms.

Use strong, unique passwords and consider a reputable password manager to help manage account credentials securely.

Never share your myIR password or verification codes with unauthorised individuals.

3. Review Authorised Account Access

Businesses should regularly review who has access to their myIR accounts.

Remove access for former employees, contractors or representatives who no longer require it.

Ensure that each authorised user has only the permissions necessary to perform their responsibilities.

4. Monitor Bank Account Changes

Unexpected bank account changes can create a risk of fraudulent refunds or payments being redirected.

Review notifications relating to changes in banking details and independently verify any unexpected requests before approving them.

5. Be Alert to Phishing Emails and Suspicious Links

Fraudsters may use emails, messages and fake websites to obtain login credentials or install malicious software.

Businesses should:

• Avoid clicking unfamiliar links in unexpected emails.
• Verify messages claiming to be from Inland Revenue.
• Avoid opening unexpected attachments.
• Keep business devices and software updated.
• Report suspicious activity promptly.

6. Maintain Accurate Accounting and Tax Records

Maintain organised records of income, expenses, GST transactions, tax returns and supporting documentation.

Regular financial reviews can help businesses identify discrepancies and investigate unusual transactions before they become more serious issues.

How Is AI Changing the Landscape of Tax Fraud in New Zealand?

The increasing use of artificial intelligence (AI) and digital tools is creating new challenges for financial security and fraud prevention.

In its November 2026 announcement, Inland Revenue’s Information Security leader, Jay Harris, highlighted the growing use of AI and digital tools to manipulate and forge documents.

This is an important development for businesses because manipulated documents may be used in identity-related fraud, financial applications and other fraudulent activities.

However, technology can also support fraud detection and prevention.

Businesses should consider strengthening their processes in the following areas:

• Document verification: Check the authenticity of important financial and identity documents.
• Access management: Restrict access to sensitive business and tax information.
• Transaction monitoring: Review unusual transactions and unexpected account changes.
• Staff awareness: Educate employees about phishing, impersonation and suspicious requests.
• Digital security: Keep accounting software, devices and security systems updated.

AI does not automatically make a document fraudulent. Businesses should focus on verifying information, maintaining appropriate controls and investigating inconsistencies.

Why Professional Accounting and Tax Advisory Support Matters

Tax compliance involves more than submitting GST and income tax returns.

Businesses need reliable financial records, accurate reporting processes and an understanding of their tax responsibilities.

Professional accounting and tax advisory support can help businesses:

• Maintain accurate accounting and financial records.
• Manage GST and income tax obligations.
• Review financial information and identify discrepancies.
• Improve reporting and reconciliation processes.
• Understand tax compliance requirements.
• Establish stronger financial management procedures.

At DFK Orb360 O’Halloran, we support New Zealand businesses through accounting and reporting, tax advisory, bookkeeping, cloud accounting support and broader business advisory services.

Our approach focuses on helping businesses understand their financial position, manage their obligations and make informed decisions.

How DFK Orb360 O’Halloran Can Support Your Business

Managing tax compliance and financial information requires the right processes and professional guidance.

DFK Orb360 O’Halloran provides accounting, tax and business advisory services designed to support businesses at different stages of growth.

Accounting and Reporting

Accurate financial information to help businesses understand performance and maintain reliable records.

Tax Advisory

Professional guidance to help businesses understand their tax position and manage tax obligations.

Bookkeeping and Reporting

Support with maintaining organised financial records and accounting processes.

Cloud Accounting Support

Assistance with accounting systems and processes that improve financial visibility and efficiency.

Outsourced CFO Services

Strategic financial support, including financial management, reporting and planning.

Business Review and Improvement

Reviews designed to identify opportunities to improve efficiency, profitability and business performance.

Whether you operate a startup, an established SME or a growing organisation, having the right accounting and advisory support can help strengthen your financial management.

Frequently Asked Questions About Tax Fraud and IRD Compliance in New Zealand

1. What is tax fraud in New Zealand?

Tax fraud involves deliberately providing false or misleading information to obtain a financial benefit or avoid tax obligations. Examples can include fraudulent GST returns, false income tax claims, identity misuse and deliberately inaccurate tax information.

2. What happened in the latest IRD $2 million fraud case?

In November 2026, Andrew Shipton was sentenced to three years in prison for his involvement in a large-scale fraud against Inland Revenue. His brother Nicholas Ngwun, identified as the ringleader, had previously received a 5½-year prison sentence. The operation involved attempts to obtain more than $2 million through fraudulent tax and COVID support claims.

3. Can someone access myIR without permission?

Unauthorised access is a recognised security risk. Stolen credentials, phishing and compromised devices can expose online accounts. Two-step verification, unique passwords and regular access reviews help protect myIR accounts.

4. How can businesses protect their myIR accounts?

Businesses should use strong and unique passwords, maintain two-step verification, restrict account access to authorised users, review banking details and monitor suspicious account activity.

5. What should I do if I suspect fraudulent activity in myIR?

Contact Inland Revenue as soon as possible if you notice unfamiliar account activity, unauthorised changes or suspicious tax transactions. Follow IRD’s security guidance, secure your login credentials and investigate any potentially compromised devices.

6. Can incorrect GST returns lead to penalties?

Incorrect GST returns can create tax compliance issues and may result in interest, penalties or further investigation depending on the circumstances. Deliberate fraud is treated much more seriously than an honest mistake. Businesses should seek professional advice if they identify errors in previous returns.

7. Why should businesses work with an accountant for tax compliance?

An accountant can help businesses maintain accurate records, prepare financial reports, manage GST and income tax obligations and identify areas requiring further review. Professional tax and accounting support can also help businesses establish more consistent financial management processes.

Final Thoughts: Make Tax Compliance and Financial Security a Business Priority

The latest IRD fraud case is a reminder that tax fraud, identity misuse and unauthorised access to financial accounts can have serious consequences.

For New Zealand businesses, protecting myIR access, maintaining accurate financial records and regularly reviewing tax processes should be important parts of everyday business management.

Strong financial controls and professional accounting support can help businesses manage their obligations and make more informed decisions.

Need Help With Your Business Accounting or Tax Compliance?

DFK Orb360 O’Halloran provides accounting, tax advisory and business support to businesses across New Zealand.

Complete the enquiry form below to connect with our team and discuss how we can support your business with its accounting, tax and financial management needs.

Protect Your Business. Strengthen Your Compliance. Make Confident Financial Decisions.

For businesses looking to strengthen their financial processes, working with an experienced accounting and business advisory team can help improve financial visibility, maintain accurate records and support better compliance.

Understanding your tax obligations is equally important. DFK Orb360 O’Halloran provides accounting, taxation and business advisory services to help New Zealand businesses manage their financial responsibilities.

If you need guidance on your business finances or tax compliance, contact the DFK Orb360 O’Halloran team to discuss your requirements.

Official Source and Further Reading

For the original announcement and details of the court case, refer to Inland Revenue:

• IRD: Accomplice in Large Scale Fraud Sentenced – 4 November 2026
• Inland Revenue New Zealand – Official Website