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Tuesday, 13 May 2014

Budget 2014: Tackling tax dodgers

Tackling tax dodgers
The National-led government is tough on tax dodgers. In Budget 2010, $120 million was added to the IRD's budget for going after tax dodgers. In Budget 2012 another $78.4 million was further invested. In Budget 2014, another $132 million will be spent. This spend not only has a demonstrable financial return, it also means that everyone is paying their fair share of tax.

Last year compliance activity for "hidden economy" tax evasion gave a return of $45 million, $5.60 for every dollar spent. For non-compliance through property speculation, $53.8 million worth of discrepancies were found, a return of $8.42 for every dollar invested.

Our opponents claim that we are obsessed with welfare fraud while do nothing about tax dodging. The facts say otherwise. Spending on Welfare Fraud has remained at exactly the same level as it was under the last Government, around $35 million a year, yet the management of debt and outstanding returns by IRD has gone up from $88 million to $125 million in Budget 2013. In 2013 the IRD collected around $4 billion worth of debt and outstanding returns.