Dunne applauds launch of IRD's compliance focus report

Revenue Minister Peter Dunne has applauded the release of Inland Revenue’s compliance focus report, released today.

The report, Helping you get it right: Inland Revenue’s compliance focus 2011-12, is aimed at helping New Zealanders meet their tax obligations and highlights areas of non-compliance such as aggressive tax planning, under-reporting of income and operating outside the tax system and fraud and identity theft.

“Inland Revenue is working to ensure that such behaviour does not go undetected as part of its ongoing compliance programme,” Mr Dunne said.

“This involves identifying inappropriate tax planning and structures through which people can minimise paying tax, and the small group of individuals and businesses that use them.”

Mr Dunne said that it was vital that everyone paid their fair share towards the provision of government services such as healthcare and education.

‘’This is even more important following the Christchurch earthquakes.”

The Government allocated $119.3 million over four years to Inland Revenue in Budget 2010 to increase its audit activity around the hidden economy, property transactions and debt collection.

Mr Dunne said there has already been an excellent return on investment.

“As at the end of March, the extra audit activity in the hidden economy and property transaction areas was showing a return on investment of $5.74 for every dollar invested.”

“For the same period, additional debt collection activity is showing a return on investment of $8.75 for every dollar invested.’’