- Hon Simon Watts
New compliance funding in Budget 2024 will ensure Inland Revenue is better equipped to catch individuals who are evading their tax obligations, Revenue Minister Simon Watts says.
“New Zealand’s tax debt had risen to almost $7.4 billion by the end of May, an increase of more than 50 per cent since 2022. That’s billions of dollars that could be invested in delivering better public services to New Zealanders.
“This is the debt we have inherited, and as the Minister of Revenue, I have been very clear that addressing this is a priority for the Government, delivering one of our commitments in the ³Ô¹ÏÍøÕ¾-NZ First coalition agreement.
“Budget 2024 allocated $116 million over the next four years to support Inland Revenue in collecting debt and improving compliance in the tax system.
“Today, Inland Revenue has confirmed that funding for the 2024/2025 financial year will be targeted at:
- the hidden economy and organised crime
- electronic sales suppression tools
- GST integrity
- student loan overseas based borrowers
- increased audit activity.
“At a time where we are trying to restore the Government’s books while still providing the services that New Zealanders deserve, it’s essential that we crack down on anyone who is not paying the tax they are required to.”
Projections from Inland Revenue indicate that the increased compliance activity is expected to see a return to the Crown of eight dollars for every dollar spent.
“The additional compliance funding will be targeted at those evading tax, such as people working in and around the hidden economy and not the vast majority of New Zealanders who comply with the law,” Mr Watts says.
