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IRD crackdown on wealthy nets millions

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IRD crackdown on wealthy nets millions

3News NZ

The relatively small amount of tax paid by very wealthy individuals has been highlighted as an issue by politicians in the past

The relatively small amount of tax paid by very wealthy individuals has been highlighted as an issue by politicians in the past

A crackdown on New Zealand's richest people by the Inland Revenue Department is expected to net $500 million over a 10-year period.

The probe is targeting 250 people who control more than $50m each. They collectively have 7500 companies and trusts, which can be used to avoid tax. One individual had 197 entities, the Weekend Herald reported.

The IRD would not say how much extra tax it collected in the current year but the total collected over 10 years is expected to be more than $500m.

Cases still under investigation total $158m, and a further $130m is disputed.

The IRD is also targeting people involved in online auctions and garage sales who are not disclosing income and people using family trusts to avoid tax.

The relatively small amount of tax paid by very wealthy individuals has been highlighted as an issue by politicians in the past.

The IRD says the integrity of the tax system relies on people being assured that everyone pays their fair share.

NZN

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Comments

29/09/2012 2:20:03 p.m.

Mark wrote:

Income tax in general shouldn't even be legal

17/06/2012 5:41:08 p.m.

Longtack wrote:

IRD time and money well spent - instead of chasing piddling little wage and salary earners.

17/06/2012 5:59:48 a.m.

alison wrote:

When you read past the headline you can see where this is going. Govt are going to be taxing sales on trade me and other sites and taxing garage sales. Paper boys obviously not bringing enough tax revenue in.

17/06/2012 4:58:17 a.m.

Steve wrote:

Funny how the focus of this government seems to be on kicking those who are down (on the benefit etc) yet the real focus should be on tax avoidance. There maybe no capital gains tax but active selling of property is taxable. Actual tax enforcement on property profits could help retain school class sizes etc. When will the media actually look into this?

16/06/2012 2:38:14 p.m.

Erm... wrote:

About time.

16/06/2012 11:24:12 a.m.

Phred wrote:

It's all a smoke screen. Top IRD officials and politicians have known for years that the rich pay very little tax. They are members of the rich set, and like it. This story is just a sop to the general public. "See, we are going to do something about it". Then they do nothing.