Doing nothing? Another Cunliffe mistruth proved wrong

David Cunliffe posted this extremely misleading image on Facebook with a claim that National was doing nothing about tax dodgers.



Unfortunately for David Cunliffe he has shot his mouth off without first garnering the facts and today Revenue Minister Todd McClay has announced exactly what National is doing to attack tax dodgers.

Speaking at the OECD Cash and Hidden Economy Conference today, Revenue Minister Todd McClay reiterated the Government’s commitment to clamping down on tax evasion and avoidance.

“This is an area the Government has invested heavily in and we are starting to see results,” says Mr McClay.

“In Budget 2010, we invested $120 million in going after tax non-compliance; another $78.4 million was further invested in Budget 2012.”  Read more »

Is the IRD IT System Upgrade Going to Blow Up in Minister’s Faces?

The IRD IT system is a huge potential headache for the government, as the IRD has kept a very closed shop and is not really releasing any information about their proposed $1.5B spend.

The problems for the government are multiple. Being a bunch of technophobes they have been stitched up by a government department who has budgeted roughly double what the New Zealand industry thinks they should be spending on their system.

Then they have appointed a series of people who think industry engagement means repeatedly cancelling all engagement at short notice so no one in the industry knows what is going on.

Worse still is that IRD has spent $50m so far and yet doesn’t have a publicly available project plan.

IRD insiders are seriously concerned that a testing contract worth $30m has been awarded without anything for anyone to test.

There is more to this story but facts have to be checked and questions have to be asked.


Herald hypocrites busted again


The NZ Herald likes to point the finger at other companies and accuse them of being tax cheats.

They did it last year in March and I busted them then. Their IRD dispute is still ongoing and IRD reckon they owe $48 million. Then there is the $611 million of accumulated losses meaning that they pay bugger all tax in New Zealand anyway.

Yesterday David Farrar came out of the blocks and kicked them fair in the cods too.

The Herald editorial:

Many firms that practice tax avoidance probably do feel wretched about it. But they owe it to their shareholders to pay no more tax than their lawyers and accountants say they must, and they transfer the blame to the legislators who leave loopholes for them, or who set taxes too high or spend the revenue unwisely. With the company tax rate at 28 per cent in New Zealand, lower than the top personal income rate, it is hard to justify corporate avoidance here.  Read more »

Dead beat dads

After drug dealers, dead beat dads disgust me more than even lying politicians

More than 10,000 parents have been saddled with debts to the Inland Revenue they were powerless to avoid, and one angry solo mum is calling for change.

As well as collecting tax, the IRD administers child support arrangements, which are a financial lifeline to single parents.

But one mother is facing a large debt as the IRD tries to claw back “overpayments” by her former partner – a debt she did nothing to incur and could not have prevented.

According to official figures 10,002 people were in a similar position as of April this year, paying back child support debts totalling $11.5 million.

The issue arises because the IRD calculates child support payments based on information provided privately by both parties.

Read more »


IRD sending out personal information

Oh dear, it looks as though IRD is following ACC’s lead.  I wonder which National Party activist the IRD has sent them to?

Inland Revenue has apologised after personal details for just under 30 customers were incorrectly released.

Deputy Commissioner Service Delivery Arlene White said a preliminary internal investigation indicated last week’s incident may have been caused by a manual handling error.

The part I am most concerned about is that they haven’t got the information back.  May be the recipient is negotiating a deal?

“We have contacted the recipient of this information and our highest priority is the return of the information,” Ms White said.

“We are also contacting the customers whose information has been released to apologise and letting them know the steps we are taking to remedy the situation.”

So, do the initial ‘steps’ to the ‘remedy the situation’ look something like this:

1. Ask for the information back

2. Ask again for the information to be returned

3. Have meetings to have the information returned.

4. Strike a deal to get the information returned – lower tax rate perhaps?

5. Ask the recipient really nicely to stay away from Phil Kitchin.





Still no sign of the lawyers

Terry the Piss threatened to sue this blogger for telling the truth about his financial affairs. I still haven’t seen the process server or heard from the lawyers, not even so much as a cease and desist letter. Now what do we read:

Terry Serepisos is flying to Zurich in a bid to save the Phoenix football team and four of his other companies – but Inland Revenue is pushing ahead with plans to liquidate them.

The IRD says it is owed more than $3.5 million in outstanding tax and penalties and wants to advertise its plans to liquidate the companies. Mr Serepisos applied to the High Court at Wellington to stop the advertisements, but a judge refused and the adverts are due to run in The Dominion Post tomorrow.

Justice Forrie Miller was told at an urgently arranged hearing on Friday that Mr Serepisos was going to Zurich this week to sign loan documents that would allow IRD and other creditors to be paid within three weeks, assuming various conditions were met.

However, Inland Revenue doubted Mr Serepisos would be able to meet the conditions.

I doubt the gnomes of Zurich will listen to his bullshit. Word on the street in Wellington now is that Terry the Piss is now “owned” by the Italians in town and the little upstart Greek is jumping to their tune. It is simply a matter of time before the Boss flicks the whole house of cards and cleans up for good.

The Phoenix will continue, with Italian bosses.

Max Whitehead on bFM

Shawn Tan’s lawyer Max Whitehead was interviewed by bFM. It is a very telling interview and during the interview we find out that Andrew Little lied in his email to ALL members and we find that The Standard have also lied because Shawn Tan has met, with Max Whitehead, prior to todays meeting when they first suspended Shawn Tan.

Listen here

This is certainly a ramshackle PR fiasco for the bastard bosses at the EPMU.

Government Heavied the Electricity Commission

A court case that has severe embarrassment potential for the Government has finally hit the courts.

Back in January DPF blogged about the ministerial interference and bullying by David Parker and Michael Cullen in the decision to ram through the Waikato Power Pylons against all the available advice.

The court case is challenging that decision and some of the key evidence was read today, including the sworn affidavit of Roy Hemmingway who was effectively fired by the government for his push back against ministerial interference.

The court was told that a majority of the commission’s board members went on to approve the proposal after being inappropriately directed to approve the decision, fearing that if they did not, they would be stripped of the power to make similar decisions in future.

This case has massive embarrassment potential, especially if the court overturns the decision for being improper in much the same way that Whangamata decision was overturned due to ministerial interference. Michael Cullen and David Parker will be squirming on the results of this case, the results of which are likely to be out before the election is held.

Radio NZ has a good summary of proceedings (streaming audio) today.

It's Official, Naomi Campbell is a scrubber.

Yep, she is a "scrubber"

Supermodel Naomi Campbell has begun five days of mopping at New York’s Sanitation Department, as punishment for hitting a maid with a mobile phone.