THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY “Public Service” WEDNESDAY, NOVEMBER 1, 1950 ROUNDING UP THE TAX DODGERS

Hauraki Plains Gazette, Volume 60, Issue 4350, 1 November 1950, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY “Public Service” WEDNESDAY, NOVEMBER 1, 1950 ROUNDING UP THE TAX DODGERS

When the former Minister of Finance tells Parliament, as Mr Nash has done, that he estimates income tax evasion costs the public revenue up to £2 million a year it is time for all taxpayers to take notice, for the ex-Min-ister, as the principal tax collector of his day, should know all about the problems which beset the department concerned. It is time, also, for the Government to make a recruiting drive for tax inspectors, of whom more are needed, for it appears that until this staff is enlarged many tax dodgers will continue to “get away with it.” It can be said that wilful evasion is one of public reactions to heavy taxation, but it is nevertheless an unmoral one. The people who are meeting their lawful obligations are paying more than they should be—the “extra” is what the evaders escape with. It is in the [national interest that the department should not be tender toward those wilful evaders it does catch, an‘d perhaps if sterner more deterrent measures: were taken there would be less difficulty of inspection. It is common knowledge that in these days of inflation, with so much ready money about, numerous transactions take place in cash and do not appear in trading accounts. By this means the tax law is circumvented, but it can be taken that were the highest penalties permissible imposed on those who are caught at this method of robbing their neighbours—for that ft what it comes to—there would be a substantial improvement in the State’s exchequer. On this subject, also, it would be well for the Government to let the public know more than has accidentally been revealed about tax de-

faulters. A few weeks back, when the superintendent of the Greymouth branch of the Land and Income Tax Department was appealing for the retention of a / staff member who had volunteered to serve in Korea, he was reported as stating that the West Coast has a large proportion of tax defaulters than' any other part of New Zealand. Forty per cent did not pay by the due date. Here is one cause of the department's staffing difficulties, for arranging of deductions of tax from salaries and wages involves much clerical work, also for the employer acting as a collecting agency. It would be interesting to learn in what categories of employment most defaulters are engaged and how much each district is affected. Taxation is too high and must be brought down as an incentive to production. It should be found possible to give some relief to those who are paying if the holes in the collection net are mended. This may involve temporary engagement of qualified men for inspections. The public will look for action to deal

with what can only be described

as a disturbing revelation about

the magnitude of evasion. There may be even more money in it than was mentioned in the Par-

iamentary discussion.