Auditor-General's Report A Wake-Up Call For IRD
ACT New Zealand Revenue Spokesman Rodney Hide said today that the Auditor-General's report on the IRD's `Performance of
Taxpayer Audit' was a wake-up call for the IRD and the Minister of Revenue Michael Cullen.
"The IRD has been targeting `easy targets' and successful people just because their names appear in the rich list. This
is wrong. Taxpayers should not be hounded just because they are a `soft-target' or because they are successful, Mr Hide
said.
"Dr Cullen should make it clear to the IRD that while taxpayer audit is a necessary function, taxpayers should be
treated with respect and that there should be a proper process for selecting audit targets.
"We are shooting our economy in both feet by having an IRD that hounds successful people and the so-called easy
targets. Successful business people are either giving up trying to work and contribute to New Zealand - and taking it
easy - or they are taking their money and business skills off-shore.
"That's nuts. It's counter-productive to drive out good, honest, hard-working businesses from New Zealand because of
high taxes and IRD harassment. Michael Cullen should not just make sure that the IRD improves its audit procedures out
of sight, but he should also follow the advice of the McLeod tax review and cap maximum income tax payments for
individuals at $1 million. As Rob McLeod advised, this would be of huge benefit to New Zealand in capturing and
retaining enterprise, capital and business talent.
"The Auditor-General found there is 'no standard practice or policy that binds investigators to proven methods of case
collections' (p.13).
'The practices of investigators vary widely' (p.13).
'Audit manuals are out of date and not being consistently used' (p.13).
'Investigators' take-up of IRD's formal auditing training is low' (p.14).
'Some investigators tended to select cases that would easily achieve' (p.16).
'We are concerned that there is no standard practice or policy that binds audit staff to proven methods of case
selection' (p.47).
"The Auditor-General's report into IRD Audit procedures is a wake up call. I will making sure that the IRD take on
board the recommendations and lift their performance and treatment of taxpayers," Mr Hide said.