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Self-employed workers are on average hiding 20 per cent of their income from the taxman, according to research released by Inland Revenue.

The tax department estimated that the under-reporting by the 55 per cent of self-employed people who were not working through companies was costing the Crown about $850 million a year in lost taxes, Inland Revenue has confirmed.

To read the full article by Stuff.co.nz reporter, Tom Pullar-Strecker hit this