Scoop has an Ethical Paywall
Licence needed for work use Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Budget 2014: Extra $132m for tax compliance

Budget 2014: Extra $132m for tax compliance

Budget 2014 will allocate $132 million to Inland Revenue over the next five years to bolster its tax compliance activities and for chasing up unfiled returns, Revenue Minister Todd McClay says.

Of this, $48.6 million is cash for Inland Revenue to undertake these activities.
The remaining $84 million is to cover tax being written off where this is unlikely to be paid, he says.

“It is estimated that the new funding in Budget 2014 will generate a gross increase in Crown revenue of $297.5 million over the next five years.”

This initiative builds on the success of the Budget 2012 unfiled returns initiative, which focused on reducing outstanding tax return volumes and targeting returns with higher revenue values.

“The great majority of New Zealanders meet their tax obligations voluntarily,” Mr McClay says. “However, when people do not meet their obligations, it is not fair on their neighbours who do.

“When that happens everyone suffers because tax avoidance means less money for health, education and other essential government services that benefit our community.”

Government funding for this work in Budget 2012 has been a worthwhile investment, Mr McClay says.

“Since 1 July 2012, Inland Revenue’s focus on unfiled returns has generated an extra $106 million.”

“Turning a blind-eye to tax non-compliance is not an option – we all must pay our fair share,” Mr McClay says.

Ends

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.