New Zealand steps up efforts to tackle tax elusion

The New Zealand government is to spend an extra 132 million NZ dollars (113.85 million U.S. dollars) over the next five years on chasing up tax evaders, and two thirds of it will be used to write off unpaid taxes, Revenue Minister Todd McClay said Monday.

The Budget to be presented Thursday would include 48.6 million NZ dollars (41.92 million U.S. dollars) for Inland Revenue to improve tax compliance and 84 million NZ dollars (72.45 million U. S. dollars) would cover tax being written off where this was unlikely to be paid, he said in a statement.

"It is estimated that the new funding in Budget 2014 will generate a gross increase in Crown revenue of 297.5 million NZ dollars (256.59 million U.S. dollars) over the next five years," said McClay.

This initiative would build on an unfiled returns initiative begun in 2012, which focused on reducing outstanding tax return volumes and targeting returns with higher revenue values.

"The great majority of New Zealanders meet their tax obligations voluntarily," McClay said.

"However, when people do not meet their obligations, it is not fair on their neighbors who do.When that happens everyone suffers because tax avoidance means less money for health, education and other essential government services that benefit our community."