web analytics

Govt backs tax cheats

Written By: - Date published: 1:35 pm, August 7th, 2009 - 35 comments
Categories: crime, tax - Tags:

There is $4 billion in overdue tax owing. Every dollar of that means someone is pocketing cash that should be paying for schools, hospitals, superannuation etc, leaving those of us who pay our tax to pick up the tab.
Tax cheats are criminals free-riding on the rest of us. Fortunately, it’s very cost effective to hunt them down. Revenue Minister Peter Dunne told the Finance and Expenditure Committee yesterday that for every dollar spent chasing overdue taxes $65 is collected.
So it makes sense for the Government to invest in IRD officers to hunt down these tax cheats, especially at a time when the government is borrowing billions. It’s two birds with one stone – crims caught, coffers filled – right? Well, maybe on Planet Sensible but here the Key Government is cutting the IRD’s budget and cutting staff.
We shouldn’t really be surprised that catching people who are ripping the rest off is not a priority for this government. After all, tax evasion is a rich man’s game, they’re the ones with the accountants and the legal nous to hide the dosh, and the rich are National’s support base. The Government would rather pass ‘tough on crime’ laws that lock up more poor kids than tackle this multi-billion dollar swindle by the rich.
There’s one standard for National’s rich mates, another for the rest of us.

35 comments on “Govt backs tax cheats ”

  1. Wow imagine what you could do with $4 billion.

    Auckland’s CBD Rail Tunnel, rail to the airport, a Howick/Botany line..;…

    OK, I’ll go back to my trainspotting buddies now.

  2. Tigger 2

    Cue right-wing comment about why the Left don’t advocate chasing beneficiary cheats with this same passion…

  3. deWithiel 3

    Standard left-wing bleeding heart response: are ‘beneficiary cheats’ ripping off the taxpayer to the tune of $4 billion?

  4. More sloppy work from Mr Sloppy.

    There is a big difference between tax cheats and tax minimisation. Indeed, the rich pricks that you so obviously despise are more than likely the ones who pay their accountants to ensure their taxes are legally minimised (altho as the banks have found out, it’s an art not a science). I’d suspect a lot of this is people too lazy to complete returns or who can’t afford accountants to legally minimise tax commitments.

    Anyway, facts have never bothered Mr Sloppy when cute slogans will do the job.

    • snoozer 4.1

      The difference is between tax evasion and tax avoidance – tax avoidence is legal but arguably not moral, tax evasion is illegal. Overdue tax obviously is not evaded tax, it is tax that has been determined to be due but hasn’t been paid.

      I don’t get your point anyway. Are you saying that we shouldn’t invest in IRD enforcing tax law, despite getting a return of $65 for each dollar invested?

      • Daveski 4.1.1

        Mr Sloppy (no facts, no evidence) assumes that it’s the rick pricks who have not paid their tax “swindle by the rich” etc etc.

        What was that phase .. .”dittoheads”.

        The point I was making is that the “rich” are far more likely to manage their taxes in a way to legally pay less tax.

        It’s just another nonsensical post by eddie built around a slogan.

        • Bright Red 4.1.1.1

          Is it just me or does ‘Mr Sloppy’ sound worryingly sexual to anyone else?

          • Daveski 4.1.1.1.1

            You’re obviously embarassed about it 🙂

            Heck, I thought I was being witty – a play on Mr Floppy – but now I’m worried what you’d think about that 😉

    • Craig Glen Eden 4.2

      You should get your facts right Daveski. The word used by Eddie is evasion, evasion is illegal whether assistance by an accountant or not. Avoidance is a different matter. So who is it thats sloppy aye Daveski?

      • Swampy 4.2.1

        “There is $4 billion in overdue tax owing. Every dollar of that means someone is pocketing cash that…”

        Clearly implying every single dollar is deliberate tax evasion.

        Only implying because it carefully written obtusely.

        Captcha: LABOR A TORYS

  5. Pat 5

    I’ve got some overdue tax to pay. I don’t think I’m a tax cheat, I am just having cashflow problems like most businesses. IRD don’t need to hunt me down, they know who I am and where I live and who my accountant is what arrangements I have made.

    Emotive language Eddie but the IRD don’t need to team of CSI-type super slueths.

    • snoozer 5.1

      Actually, they already have a team of and they get $65 that otherwise would be lost in revenue for every dollar spent.

      Obviously not every dollar overdue will never be paid but a large portion won’t be. You can’t expect Eddie or anyone to declare that a certain portion of that $4 billion is just people being late and the rest is people never intending to pay.

      • Swampy 5.1.1

        We can, it is called “the facts”. Whereas what is written to date is called “hyperbole”.

    • Bright Red 5.2

      Hmm. I always pay my tax on time, like I’m legally required to do. But if you need a little helping hand, Pat, give you a little extra time and the rest of us cover for you in the mean-time, I have no trouble with that. What shall we call it? Free-riding or corporate welfare?… Bludging?

  6. Lew 6

    Heh, cue moral reversal ‘tax is theft so it’s doubly immoral to use stolen money to chase more money which shouldn’t be stolen in the first place’ argument …

    L

  7. Pat 7

    On Planet Sensible “overdue tax” does not mean there are “tax cheats” or “tax evaders”. It means the tax is overdue.

  8. Gordon Shumway 8

    Really? You’re sure most of the unpaid tax is from “rich men” and not small/struggling businesses or sole proprietors?

  9. Ianmac 9

    I read somewhere that there are 10 “inspectors” to hunt down tax cheats who are in the low income perhaps beneficiaries etc, for every one inspector to hunt the bigtime big money cheats. Yet by far the biggest money is with the latter. Is that still right?

    • Gordon Shumway 9.1

      Ian – can you show us the stats for your claim that “by far the biggest money” is with “bigtime big money cheats”. Or did you make that up?

      • snoozer 9.1.1

        The rest of the country doesn’t earn enough to be owing that much tax! And workers and beneficiaries pay their tax before they get paid.. so it can only be businesses, the slef-employed, trusts etc that are failing to pay up.

        • Gordon Shumway 9.1.1.1

          Correct, but you realise that most businesses in NZ aren’t “big business”, don’t you?

      • Armchair Critic 9.1.2

        A breakdown of the type of tax and the amount owing would provide a bit more clarity.

      • Ianmac 9.1.3

        Sorry but no. It was part of a NZ doumentary a few years ago, and I assumed it was IRD but it may have been wider in that it included benefit fraud. It was just a general principle. Did Fay/Ritchwhite manage the system to avoid tax?

  10. cocamc 10

    Eddie
    Wasn’t obviously an issue for the previous govt either, unless this $4billion has been built up since last November.

    • Bright Red 10.1

      ah ‘they did it too’. That’s meant to be your fall-back argument, cocamc

  11. burt 11

    Hell $4b unpaid since the election… who would have guessed….

  12. Bryan 12

    Although Bernard Hickey showed the bipartisan foxes well and truly in charge of the hen-house today:

    http://blogs.nzherald.co.nz/blog/show-me-money/2009/8/6/can-landlords-be-unbiased/?c_id=8&objectid=10589084

  13. Murray M 13

    Burt @ 4.39pm – got it in one. Why was there no outrage when Labour were in power.

    • Armchair Critic 13.1

      Did you read past the second paragraph? Once you get past that the post explains the government are cutting budget numbers and staff at IRD.
      The post implies that when Labour were in power, some of the staff that are to lose their jobs were busy tracking down the outstanding tax, until now. National’s plan is to cut the staff so less overdue tax will be collected and more will be written off as uncollectable. Meaning the tax burden falls more heavily on people who actually do pay tax. How about debating this, rather than trying to blame Labour.

      • Swampy 13.1.1

        If you want to debate the facts, state exactly what work those laid off IRD staff were doing.

        • Armchair Critic 13.1.1.1

          Swampy – Firstly, I made the same suggestion over 24 hours ago. Get with the programme.
          Second, have a read of the comment I made that you replied to. I never claimed to know what the staff at IRD were doing, I just summarised the original post.
          Like the person I was replying to, it appears you have some difficulty with comprehension. I can’t be bothered explaining the subject further as you sound like a dumb-arse troll who won’t read or even get what I have to say in any case. Please make your reply stupid enough to get yourself banned.

  14. brownsbayboy 14

    [lprent: deleted and banned. Pretty clear this idiot doesn’t have the required skills to write here. Reflexive troll]

  15. Swampy 15

    Wow, everyone who hasn’t paid their tax must automatically be a tax cheat. Have you stopped to think that a lot of this is from struggling small business people or sole traders who are behind on their tax payments due to the financial conditions?

  16. GNZ 16

    Swampy why don’t you borrow money from someone who actually agreed to lend it to you – as opposed to us actual tax payers. And if you can’t get credit from them why should you have credit from us.
    IRD and the commerce comission should be giving lots more money.

Recent Comments

Recent Posts

  • Government support for South Auckland community hit by tornado
    The Government is contributing $100,000 to a Mayoral Relief Fund to support Auckland communities impacted by the Papatoetoe tornado, Acting Minister for Emergency Management Kris Faafoi says. “My heart goes out to the family and friends who have lost a loved one, and to those who have been injured. I ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Celebrating World Refugee Day
    World Refugee Day today is an opportunity to celebrate the proud record New Zealanders have supporting and protecting refugees and acknowledge the contribution these new New Zealanders make to our country, the Minister of Immigration Kris Faafoi said. “World Refugee Day is also a chance to think about the journey ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Face to face meeting delivers significant progress on NZ-UK FTA
    New Zealand and the UK have committed to accelerating their free trade agreement negotiations with the aim of reaching an agreement in principle this August, Trade Minister Damien O’Connor announced. “We’ve held constructive and productive discussions towards the conclusion of a high-quality and comprehensive FTA that will support sustainable and inclusive trade, and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government taking action to protect albatross
    New population figures for the critically endangered Antipodean albatross showing a 5 percent decline per year highlights the importance of reducing all threats to these very special birds, Acting Minister of Conservation Dr Ayesha Verrall says. The latest population modelling, carried out by Dragonfly Data Science, shows the Antipodean albatross ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Adoption laws under review
    New Zealand’s 66-year-old adoption laws are being reviewed, with public engagement beginning today.  Justice Minister Kris Faafoi said the Government is seeking views on options for change to our adoption laws and system. “The Adoption Act has remained largely the same since 1955. We need our adoption laws to reflect ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Wider roll-out of cameras on boats to support sustainability and protect marine life
    Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations.  Minister for Oceans and Fisheries David Parker today announced the funding is now in place for the wider roll out ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Plan for vaccine rollout for general population announced
    New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today. The rollout of the vaccine to the general population will be done in age groups as is the approach commonly used overseas, with those over ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand introduces Belarus travel bans
    New Zealand has imposed travel bans on selected individuals associated with the Lukashenko regime, following ongoing concerns about election fraud and human rights abuses after the 2020 Belarus elections, Foreign Affairs Minister Nanaia Mahuta has announced. The ban covers more than fifty individuals, including the President and key members of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ economy grows driven by households, construction and business investment
    The Government’s efforts to secure the recovery have been reflected in the robust rebound of GDP figures released today which show the economy remains resilient despite the ongoing impact of the COVID-19 pandemic, Grant Robertson said. GDP increased 1.6 percent in the first three months of 2021. The Treasury had ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Milestone 250th tower continues to improve rural connectivity
    The Government has welcomed the completion of the 250th 4G mobile tower, as part of its push for better rural connectivity. Waikato’s Wiltsdown, which is roughly 80 kilometres south of Hamilton, is home to the new tower, deployed by the Rural Connectivity Group to enable improved service to 70 homes ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Quarantine Free Travel pause with Victoria to lift on Tuesday
    Following a further public health assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria has been extended to 11.59pm on Tuesday 22 June, COVID-19 Response Minister Chris Hipkins says. It has been determined that the risk to public health in New Zealand continues ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister mourns passing of Dr Sir Ian Hassall
    Prime Minister Jacinda Ardern is mourning the passing of Dr Sir Ian Hassall, New Zealand’s first Children’s Commissioner and lifelong champion for children and children’s health. As a paediatrician Sir Ian contributed to a major world-first cot death study that has been directly credited with reducing cot deaths in New ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • APEC structural reform meeting a success
    APEC ministers have agreed working together will be crucial to ensure economies recover from the impact of COVID-19. Minister of Commerce and Consumer Affairs David Clark, chaired the virtual APEC Structural Reform Ministerial Meeting today which revolved around the overarching theme of promoting balanced, inclusive, sustainable, innovative and secure growth ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Digital hub to boost investment in forestry
    A new website has been launched at Fieldays to support the forestry sector find the information it needs to plant, grow and manage trees, and to encourage investment across the wider industry. Forestry Minister Stuart Nash says the new Canopy website is tailored for farmers, iwi and other forestry interests, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government continues support for rangatahi to get into employment, education and training
    Over 230 rangatahi are set to benefit from further funding through four new He Poutama Rangatahi programmes, Minister for Social Development and Employment Carmel Sepuloni announced today. “We’re continuing to secure our economic recovery from COVID by investing in opportunities for rangatahi to get into meaningful employment, education or training ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NCEA subjects up for consultation
    The education sector, students, their parents, whānau and communities are invited to share their thoughts on a list of proposed NCEA subjects released today, Education Minister Chris Hipkins says. This is a significant part of the Government’s NCEA Change Programme that commenced in 2020 and will be largely implemented by ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Major investment in plantain forage programme aims to improve freshwater quality
    The Government is backing a major programme investigating plantain’s potential to help farmers protect waterways and improve freshwater quality, Acting Agriculture Minister Meka Whaitiri announced at Fieldays today. The Sustainable Food and Fibre Futures (SFFF) fund is contributing $8.98 million to the $22.23 million seven-year programme, which aims to deliver ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • America’s Cup decision
    The Minister responsible for the America’s Cup has confirmed the joint Crown-Auckland Council offer to host the next regatta has been declined by the Board of Team New Zealand. “The exclusive period of negotiation between the Crown, Auckland Council, and Team New Zealand ends tomorrow, 17 June,” said Stuart Nash. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Food and fibres sector making significant strides towards New Zealand’s economic recovery
    The Government is backing the food and fibres sector to lead New Zealand's economic recovery from COVID-19 with targeted investments as part of its Fit for a Better World roadmap, Forestry Minister Stuart Nash said. “To drive New Zealand’s recovery, we launched the Fit for a Better World – Accelerating ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech to He Whenua Taurikura – New Zealand’s annual hui on countering terrorism and violent...
    Check against delivery Can I begin by acknowledging the 51 shuhada, their families and the Muslim community. It is because of the atrocious violent act that was done to them which has led ultimately to this, the start of a dialogue and a conversation about how we as a nation ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Cost of Government Southern Response proactive package released
    The Government has announced the proactive package for some Southern Response policyholders could cost $313 million if all those eligible apply. In December, the Minister Responsible for the Earthquake Commission, David Clark announced a proactive package for SRES claimants who settled their claims before October 2014. It trailed the judgment ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New support to reduce emissions from public building and construction projects
    Government agencies are getting new support to reduce carbon emissions generated by construction of new buildings, with the release of practical guidance to shape decisions on public projects. The Ministers for Building and Construction and for Economic Development say a new Procurement Guide will help government agencies, private sector suppliers, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • He Whenua Taurikura: New Zealand’s first Hui on Countering Terrorism and Violent Extremism
    The Prime Minister has opened New Zealand’s first hui on Countering Terrorism and Violent Extremism, which is being held in Christchurch over the next two days. The hui delivers on one of the recommendations from the report of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to inaugural Countering Terrorism Hui
    E aku nui, e aku rahi, Te whaka-kanohi mai o rātou mā, Ru-ruku-tia i runga i te ngākau whakapono, Ru-ruku-tia i runga i te ngākau aroha, Waitaha, Ngāti Mamoe, Ngai Tahu, nāu rā te reo pohiri. Tena tātou katoa. Ki te kotahi te kakaho ka whati, ki te kapuia, e ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Campaign shines a light on elder abuse
    A new campaign is shining a spotlight on elder abuse, and urging people to protect older New Zealanders. Launched on World Elder Abuse Awareness Day, the Office for Seniors’ campaign encourages friends, whānau and neighbours to look for the signs of abuse, which is often hidden in plain sight. “Research suggests ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Farewelling sports administrator and philanthropist Sir Eion Edgar
    Sport and Recreation Minister Grant Robertson today expressed his sorrow at the passing of Sir Eion Edgar – a leading sports administrator and celebrated philanthropist who has made a significant impact both within and beyond the sport sector. “Sir Eion’s energy, drive and generosity has been truly immense. He leaves ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government to apologise for Dawn Raids
    The Government will make a formal apology for the wrongs committed during the Dawn Raids of the 1970’s. Between 1974 and 1976, a series of rigorous immigration enforcement policies were carried out that resulted in targeted raids on the homes of Pacific families. The raids to find, convict and deport overstayers ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Humanitarian support for Bangladesh and Myanmar
    Foreign Affairs Minister Nanaia Mahuta today announced that New Zealand is providing NZ $8.25 million in humanitarian assistance to support refugees and their host populations in Bangladesh and to support humanitarian need of internally displaced and conflict affected people in Myanmar.  “Nearly four years after 900,000 Rohingya crossed the border ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Poroporoaki: Dame Georgina Kamiria Kirby
    E Te Kōkō Tangiwai, Te Tuhi Mareikura, Te Kākākura Pokai kua riro i a matou. He toka tū moana ākinga ā tai, ākinga ā hau, ākinga ā ngaru tūātea.  Haere atu rā ki te mūrau a te tini, ki te wenerau a te mano.  E tae koe ki ngā rire ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Feedback sought on future of housing and urban development
    New Zealanders are encouraged to have their say on a long-term vision for housing and urban development to guide future work, the Housing Minister Megan Woods has announced. Consultation starts today on a Government Policy Statement on Housing and Urban Development (GPS-HUD), which will support the long-term direction of Aotearoa ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Clean car package to drive down emissions
    New rebates for electric and plug-in hybrid vehicles start July 1 with up to $8,625 for new vehicles and $3,450 for used. Electric vehicle chargers now available every 75km along most state highways to give Kiwis confidence. Low Emission Transport Fund will have nearly four times the funding by 2023 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Progress towards simpler process for changing sex on birth certificates
    The Government is taking the next step to support transgender, non-binary and intersex New Zealanders, by progressing the Births, Deaths, Marriages and Relationships Registration Bill, Minister of Internal Affairs, Jan Tinetti announced today. “This Government understands that self-identification is a significant issue for transgender, non-binary and intersex New Zealanders, and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Crown speeds up engagement with takutai moana applicants
    The Crown is taking a new approach to takutai moana applications to give all applicants an opportunity to engage with the Crown and better support the Māori-Crown relationship, Treaty of Waitangi Negotiations Minister Andrew Little says. Following discussions with applicant groups, the Crown has reviewed the existing takutai moana application ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Alcohol and Other Drug Treatment (AODT) Court opens
    The Minister of Justice, Kris Faafoi, and the Minister for Courts, Aupito William Sio, have welcomed the opening of a new Alcohol and Other Drug Treatment (AODT) Court in Hamilton. The AODT Court (Te Whare Whakapiki Wairua) addresses situations where substance abuse and offending are intertwined. “New Zealanders have told ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • EU and UK FTAs top of list for first ministerial trip since COVID-19
    Trade and Export Growth Minister Damien O’Connor today announced details of his planned visit to the United Kingdom and European Union next week, where he will hold trade and agriculture discussions to further New Zealand’s economic recovery from COVID-19. The visit will add political weight to ongoing negotiations with both the EU ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Arihia Bennett to chair Royal Commission Ministerial Advisory Group
    Te Rūnanga o Ngāi Tahu chief executive Arihia Bennett MNZM has been appointed chair of the newly appointed Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “Twenty-eight people from diverse backgrounds across Aotearoa have been selected for the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the New Zealand Medical Association General Practitioners' Conference, Rotorua
    Ki ngā pou maha o te whare hauora o Aotearoa, kei te mihiTo the pillars of our health system I acknowledge/thank you Ki te ope hapai hauora o roto o tēnei rūma, kei te mihi To our health force here in the room today, I acknowledge/thank you He taura tangata, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Karangahape Road upgrades are streets ahead
    The upgrades to Karangahape Road makes the iconic street more pedestrian and cycle-friendly, attractive and environmentally sustainable, Transport Minister Michael Wood and Auckland Mayor Phil Goff said at the formal celebration of the completion of the Karangahape Road Enhancements project. The project included widening footpaths supporting a better outdoor dining ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to APEC business event
    E ngā tumu herenga waka, ākina ā ngaru, ākina ā tai ka whakatere ngā waka ki te whakapapa pounamu, otirā, ki Tamaki o ngā waka Tena koutou katoa… To the great leaders assembled, who guided your waka through turbulent times, challenging waters and you continue to navigate your respective waka ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pause on Quarantine Free Travel with Victoria extended
    Following an assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria will continue for a further seven days, COVID-19 Response Minister Chris Hipkins says. There are now 93 cases associated with the outbreak in greater Melbourne, spread over four clusters. Contact tracing efforts ...
    BeehiveBy beehive.govt.nz
    2 weeks ago