Headline: Big challenges for new Revenue minister
The Revenue portfolio is in disarray following the departure of distracted former Minister Peter Dunne, Labour’s Revenue spokesperson David Cunliffe said today.
“New Minister Todd McClay will have his work cut out catching the egg that is IRD before it hits the floor.
“Peter Dunne, the rotating quasi-official who previously held the portfolio, got completely lost in the weeds of iPad and car park taxes. He was effectively captured by his officials.
“According to Peter Dunne it was ok to tax your iPad use but not tax Apple’s iPad profits. That shows just how much disarray this portfolio is in.
“There is no strategic leadership to get the revenue system to contribute to sustainable economic growth. But the new minister is pretty green so I’ll give him a couple of pointers.
“First, hold a proper debate on a capital gains tax recommended by both the OECD and the International Monetary Fund.
“Second, bring back research and development tax credits and accelerated depreciation on much-needed new technology.
“Third, take early action on tax avoidance by multinational companies. There is no need to wait for international consensus before taking obvious local steps to safeguard New Zealand interests.
“Fourth, cancel the bizarre fringe benefit tax on temporary accommodation that will only hamper the rebuild of Christchurch.
“Today McClay has a tax department that seems especially loose with taxpayers’ money. That’s hardly appropriate. He must get the runaway train that is the IRD’s gold plated $1.5 billion IT rebuild under control.
“As a new minister it is an appropriate time to admit that his Government’s trickle down ‘tax switch’ in 2010 was neither good for economic growth nor a fairer society.
“I am not going to hold my breath, but we are going to hold him to account,” said David Cunliffe.
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