[Sitting date: 03 December 2014. Volume:702;Page:7. Text is subject to correction.]

9. ALASTAIR SCOTT (National—Wairarapa) to the Minister of Revenue : What information has he received about the Government’s action against tax fraud?

Hon TODD McCLAY (Minister of Revenue): As part of the Government’s crackdown on tax compliance, Inland Revenue has identified fraud-related discrepancies totalling $10.4 million in 2014, which is more than double the $4.5 million identified in 2013. This is a return on an investment of $3.73 for every dollar spent. It is important to note that the vast majority of New Zealanders voluntarily and responsibly pay their fair share of tax. However, this Government is determined to catch up with those who do not by going after debt, outstanding returns, hidden economy activities, aggressive tax planning, fraud, and property compliance.

Alastair Scott : What other initiatives has the Government implemented relating to tax compliance?

Hon TODD McCLAY : As part of Budget 2014, the Government provided an extra $132 million to Inland Revenue to bolster tax compliance activities. This is on top of nearly $200 million already allocated through Budgets 2010 and 2012 for tax compliance and debt collection work. The results of this investment can clearly be seen: $49.8 million additional revenue has been collected through hidden economy tax avoidance initiatives, non-compliance through tax property speculation identified $52.4 million, and in going after aggressive tax planning we identified $539 million of discrepancies—a whopping return of $62.40 for every $1 spent. Every dollar we recover means that there is more that we can invest in funding health, education, and other essentials for the good of society.

ENDS

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