IRD gets tough on online traders

The IRD has collected nearly $1.2 million in tax following a series of investigations into online traders.

One tax dodger told 3 News he had earned at least $20,000 from selling snowboards on TradeMe.

"Everyone does it. You can parallel import, do whatever you like, get it from the States ... and you can pretty much undercut all the retailers in New Zealand."

But TradeMe's Chris Budge warned traders that they were not operating anonymously online.

"Trade Me is probably a really stupid place to do something illegal."

The IRD said the majority of TradeMe users had nothing to worry about and urged those who had sidestepped tax to come forward to avoid fines or prosecution.

Spokesman Martin Scott said: "If you enter a one-off transaction on TradeMe and if it was for the intention of making money, so you've bought something and are reselling it to make money, then you're up for tax."

- NZHERALD STAFF