Voluntary compliance a win-win at the border

Customs Minister Nicky Wagner says promoting voluntary compliance at the border is helping Customs track ahead of Treasury’s forecast revenue and saving traders money.

“Helping importers and excise payers improve data integrity and avoid administrative penalties is a win-win for taxpayers and businesses. Revenue is being raised ahead of forecast and traders are avoiding costly penalties,” Ms Wagner says.

“In the first six months of the financial year, Customs recovered $17.2 million in additional revenue through the trade compliance programme. This compares with $12.7 million for the same period in 2013/14.”

Customs’ trade compliance programme involves checking imported goods for undervaluation and errors which can significantly affect the charges due. Customs also works with traders and tax advisers after goods have been cleared to ensure imports have been accurately valued.

“This benefits both taxpayers and traders. Customs encourages traders to report valuation adjustments and errors so they avoid costly penalties. Accurate reporting in turn improves revenue collection.

“Working with traders to increase voluntary compliance means less time chasing penalties and more time focused on keeping New Zealand’s border safe,” Ms Wagner says.

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