Nash: Rorting Kiwis should be put on notice

new-zealand-labour-party

Thu Jan 21 2010 13:00:00 GMT+1300 (New Zealand Daylight Time)

Nash: Rorting Kiwis should be put on notice

Thursday, 21 January 2010, 3:02 pm
Press Release: New Zealand Labour Party

21 January 2010
Media Statement

New Zealanders who are rorting the system to claim Working for Families tax credits have been justifiably put on notice, says Labour Revenue spokesperson Stuart Nash.

Welcoming comments by Revenue Minister Peter Dunne, Stuart Nash said it had been revealed last August that Inland Revenue had identified close to 10,000 families who had structured their financial affairs in order to minimise their taxable income through the use of trusts and/or companies, making them eligible to claim Working for Families tax credits.

Of this group, 35 families were identified as having a household income of over $150,000, Stuart Nash said.

“I said at the time that this was unacceptable and any such loopholes needed to be closed. That’s why I’m pleased the Minister has now recognised the magnitude of the problem and has decided to address it. I support him 100 percent.”

Stuart Nash said what made the rorts “even more distasteful, and totally unacceptable as far as hard working New Zealanders are concerned, is that more than 370,000 New Zealand families are receiving Working for Families legitimately.

“Working for Families is the most comprehensive income redistribution scheme in a generation, and has lifted thousands of children out of poverty,” Stuart Nash said.

“Working for Families is making a real difference to hard-working Kiwi families at a time when the cost of living continues to increase.

“It is crucial to address the scams, but the Government must not use a crackdown on rorts to make significant changes to the scheme. Working for Families is the difference between surviving and not surviving for thousands of Kiwi families.”

ENDS

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