IRD Celebrates Successful Year
August 28, 2012 New Zealand Taxation
The Inland Revenue Department has seen significant success in fighting tax evasion over the last 12 months, uncovering millions of dollars of tax discrepancies and recovering unpaid student loans.
Last week the Inland Revenue Department released its annual Compliance Focus report, detailing the Department’s efforts to improve tax compliance in the country throughout the last 12 months. Throughout the last year the Department has uncovered approximately NZD 135 million of discrepancies on tax returns, with nearly NZD 44 million of economic activity which was previously undisclosed and part of the hidden economy.
The IRD’s efforts to increase repayment of student loans has also seen success, with the Student Loan Overseas-Based Borrowers initiative resulting in NZD 27.4 million in extra repayments since its launch in October 2010.
As part of its ongoing efforts to increase compliance and weed out tax evasion, the IRD is “using increasingly sophisticated methods to help customers do the right thing and identify the small number of taxpayers deliberately operating outside of the tax rules.”
The Department’s success has been attributed to a greater access to electronic tools to help check customers’ data against information provided by tax authorities overseas and private organizations from around the world.
Through its administrative systems, the Inland Revenue Department has also been able to identify individuals who have filed false claims for Child Support and Working for Families entitlements.
Photo by Steve & Jemma Copley