Inland Revenue is "five years late" to tackle the mammoth issue of the country's estimated billion-dollar "hidden economy", a tax expert says.

Inland Revenue collected $77.9 billion worth of tax revenue in the 2019 year, but experts estimate that it is missing out on at least $1b more as the country's self-employed are under-reporting their income by about 20 per cent.

A Victoria University and IRD study released in April estimated that New Zealand is missing out on about $800m in its annual tax take. Chartered Accountants Australia and New Zealand believe this is likely to be in excess of

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