Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


ACT Vows to Cut Red Tape Bureaucracy

"Business in New Zealand is drowning in red tape. Much of the red tape is new. Over 5,200 new laws have been passed by the National Government.

ACT is the only party saying New Zealanders are paying too much tax, it is now time for a change; time to stop runaway taxation by the IRD, which is inefficient, bloated and often arrogant in it's attitude to taxpayers.

800,000 of us work for small business. To put it another way each year business works until 16th February just on form filling - then we work until May to pay taxes.

ACT has taken on the IRD on behalf of all taxpayers. The Select Committee Inquiry into the IRD is the work of ACT and Rodney Hide. The Committee's report due out this week will be a step towards stamping out the IRD's bully-boy culture. It will be a step towards putting the rights of taxpayers first. Act will make that happen.

The tax take has been spiralling upward for years, crippling businesses and halting economic growth. Our grandfathers paid one dollar in ten to the politicians. Now we pay more than one dollar in three.

It is estimated that the compliance cost of tax is a massive $2.6 billion a year - that's 2.5% of GDP.

The average small business with only four staff must fill out 32 forms a year for the IRD. That's six two monthly GST returns: twelve PAYE employer deduction forms: twelve PAYE employer schedules: one FBT return: and one ACC residual claims levy statement.

ACT says this is red tape bureaucracy gone mad, it is totally unnecessary. The IRD keeps saying that they have become more efficient, but they have simply dumped more and more work onto businesses. The IRD has never done a systematic study on the cost of compliance for business even though it has a statutory duty to do so.

The only study we have done was in 1992 that showed that the compliance cost to business is huge. It costs businesses five times what it costs the IRD. For every one dollar the IRD spends businesses have to spend five. That was seven years ago. It has got much worse since then.

The study showed the total number of hours needed by business to fill out tax forms was the same as 23,000 people working full time. That is a city the same size as Timaru.

ACT is the only party willing to tackle the IRD's red tape bureaucracy head on. ACT will do away with unnecessary compliance costs.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>


14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>


Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>


Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>


Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>


Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>


Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>


Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>


"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>





InfoPages News Channels