INDEPENDENT NEWS

Inland Revenue charging higher interest than banks

Published: Thu 11 Jul 2019 02:51 PM
Andrew Bayly - Revenue
11 July 2019
It is outrageous Inland Revenue has decided to raise the interest rate it charges taxpayers on unpaid and underpaid tax, while cutting the rate it pays those it owes money, National’s Revenue spokesperson Andrew Bayly says.
“Inland Revenue says the interest rate charged on overdue tax will rise from 8.22 per cent to 8.35 per cent. At the same time the amount it pays to those who pay too much tax will fall from 1.02 per cent to 0.81 per cent. This runs contrary to what has been happening with bank interest rates, particularly over the past 12 months.
“Inland Revenue is now charging a lot more than the banks on what New Zealanders owe it, and paying a lot less than the banks on money it owes taxpayers.
“Charging more on money owed by taxpayers is outrageous when we have an environment of exceptionally low interest rates.
"The interest rate Inland Revenue charges taxpayers should be getting smaller, not bigger. Instead it has been steadily increasing in Inland Revenue's favour.
“That is patently unfair to taxpayers and cannot be justified. Neither can paying taxpayers an interest rate of 0.81 per cent on money owed when the banks pay short term deposit rates of up to 3.25 per cent.
“It is particularly hard to swallow as it comes off the back of Revenue Minister Stuart Nash’s confirmation that Inland Revenue won’t be paying back an estimated $42 million overpaid by KiwiSaver investors in PIE tax.
“So now we have a Government who is short changing Kiwis if it pays back what it owes you at all.”
ends

Next in New Zealand politics

Gordon Campbell on a new book on the leaky homes scandal
By: Gordon Campbell
Review finds NZTA road safety regulation failings
By: RNZ
Climate Change Commission Chair-designate announced
By: New Zealand Government
Government putting right Holidays Act underpayment in Health
By: New Zealand Government
Police should not have pursued youths on Auckland motorway
By: Independent Police Conduct Authority
Locked-in care is a ‘hard place to be happy’
By: Office of the Children's Commissioner
Campaigner welcomes removal of racist refugee restrictions
By: Murdoch Stephens
Sroubek report confirms Minister made wrong decision
By: New Zealand National Party
NZTA to refocus on safety following review
By: New Zealand Government
NZTA to adopt "safety first"?
By: Movement
NZ roads will never cope with heavier trucks
By: Citizens Environmental Advocacy Centre
National Party open to higher methane targets
By: BusinessDesk
NZ to go Dutch to battle climate change
By: BusinessDesk
Small end of town needs to chip in on climate change - Carr
By: BusinessDesk
Carr named to chair Climate Change Commission
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media