tax collection tagged posts

Our Underground Economy Cost $7 Billion

December 1, 2011 New Zealand Taxation

New Zealand economyNew Zealand’s acceptance of unreported labor work and “cash jobs” is costing the country dearly, with the underground economy now being valued at more than 12 percent of the country’s Gross Domestic Product.

According to recent research conducted by the international tax activist group Tax Justice Network, New Zealand has an underground economy worth approximately NZD 20 billion per year. The extent of this shadow economy ranks New Zealand as the 51st most affected country in the world by the cost of unreported transactions. It is estimated that the New Zealand government misses out on approximately NZD 7.1 billion in tax revenues from activities in the shadow economy. The total of the lost taxes is approximately equivalent to 44 percent of the country’s health care spending.

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New Zealand Government Accounts Released

April 9, 2010 New Zealand Taxation

Government Building @ WellingtonThe New Zealand Government has released documents showing that the national budget deficit is narrower than projected, despite tax collection falling below expectations.

On April 9th the New Zealand Government released its Financial Statements for the eight months ended February 28th 2010. The new statements show the Government’s operating deficit for the period to be NZD 4.49 billion, 11.2 percent below the 2009 Half Year Economic and Fiscal Update. The difference was attributed to lowered Government spending and a once-off payment to the Government from its structured financing legal settlements. An unexpected surge in retail sales caused also Goods and Service Tax (GST) collections to reach NZD 389 million, over 5.3 percent higher than projected...

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