The Taxpayers’ Union is slamming Revenue Minister David Parker’s use of little-known powers recently granted to the IRD to undertake a fishing expedition of wealthy New Zealanders.

Responding to the reports of letters being issued to wealthy New Zealanders, Jordan Williams a spokesman for the Taxpayers Union said:

“No one objects to IRD obtaining information to enforce tax laws. But this is a fishing expedition, presumably so Labour can try and justify wealth or inheritance taxes.”

“Politicising the information gathering powers of the IRD risks the integrity of their work. For example, because New Zealand has signed up to information sharing agreements, the private information sought could easily end up with the tax departments of countries where tax secrecy or data security is lax.” 

“This is particularly concerning for entrepreneurs who compete with state-backed companies overseas. Asset and business information handed to the IRD could well end up with international competitors.”

“Remember these people have done nothing wrong and New Zealand’s tax and imputation regime does not generally incentivise tax-driven business structures. But the Government is still sending in the heavies to effectively do audits.”

“We want international investors to invest and become domicile in New Zealand. Measures like this drive the rich overseas, along with their capital and jobs. These sorts of nosey laws to snoop on wealth belong back in Eastern Europe.”

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