In New Zealand the Revenue Minister has said that every dollar spent in efforts to combat tax evasion in the ‘hidden economy’ raised NZD5.60 last year.
At the OECD conference on “Cash and Hidden Economy” the Prime Minister informed the delegates that New Zealand has devoted large resources to projects to detect and prevent tax evasion and is reaping the harvest of these efforts. Around NZD 45 million in extra revenue has been raised as a result of initiatives relating to the hidden economy and the associated tax evasion. More has been recovered from investigations into transactions involving speculative investments in property.
The Prime Minister explained that preventing evasion is considered preferable to detecting the problems after they have already occurred, and taxpayer education is therefore important. Simplification of tax compliance is also important. Costs are saved for the taxpayer and the tax administration if it is made easier to comply with tax obligations in a timely manner.
