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.