IRD doubles number of fraudsters caught

  • Todd McClay
Revenue

Revenue Minister Todd McClay says Inland Revenue has doubled the number of people caught committing tax fraud in 2014, compared to the previous year.

“We have long signalled that we will not tolerate people trying to rip off the system. We have invested heavily in finding evasion and it is paying off,” says Mr McClay.

Inland Revenue identified fraud-related discrepancies totalling $10.4 million, compared to $4.5 million in 2013. This was a return on investment of $3.73:$1.

Most discrepancies were connected with Working for Families Tax Credits or personal tax summaries, and involved improper use of documentation or obtaining financial gain the taxpayer was not entitled to.

“We trust taxpayers to do the right thing, and the majority do, but those out to defraud the system should know there is a very high probability of being caught,” says Mr McClay.

Budgets 2010, 2012 and 2014 saw around $330 million of additional spending was allocated to tax compliance activities.

Inland Revenue has developed new analytical processes to screen and identify potentially fraudulent claims for review before they are released, as well as reviewing claims from previous years.

“The technology is sophisticated and can detect suspicious activity ranging from small scams to complex and organised criminal activities.

“People who deliberately cheat the system are deliberately cheating every New Zealand taxpayer.

“Taxes are paid to fund health, education and other essentials of a good society – and every dollar we recover means more that can be invested in them,” says Mr McClay.