29544 (2024). Hon Barbara Edmonds to the Minister of Revenue

29544 (2024). Hon Barbara Edmonds to the Minister of Revenue: How much of the additional compliance activity funded through Budget 2024, if any, will be spent on compliance activities on Child Support customers?

Hon Simon Watts: In Budget 2024, Inland Revenue received funding of $29 million per annum to increase compliance activity, broken down as follows: • $25 million is targeted to tax compliance including additional tax revenue from (compliance activities and unfiled returns) and additional cash from debt activities. • $4 million is targeted to overseas-based student loan borrower debt collection activities. The compliance activities and areas of focus are at the discretion of the Commissioner of Inland Revenue. Inland Revenue takes a broad, risk-based approach to managing compliance across all of the tax and social policy products it administers. Inland Revenue has identified the following areas to focus on initially, noting that this will change over time based on compliance risk: • hidden economy • high-wealth individuals • property compliance • overseas-based student loan borrowers using border enforcement and third-party suppliers to collect debt and/or locate borrowers • organised crime • trusts compliance corporate entity restructuring for tax avoidance • income suppression, for example electronic sales suppression tools (ESST) • online risks such as crypto-assets.