What about Taxpayer Rights?

To quote an old saying: “the only certainties in life are death and taxes”.

Most people see paying taxes as the price of living in a democracy.  They expect their taxes will be used to provide public services like a reliable police force, an independent justice system, defence, health, education and a safety net to protect those in real need.

The Inland Revenue Department is the agency that collects taxes, and has significant powers to do so – far stronger than those given to police to catch criminals.  While most taxpayers don’t experience problems, some do – and for them the process can be brutal.  For  those innocent of any wrongdoing, it can be a devastating and lonely battle.

Many readers will have heard of Christchurch man Dave Henderson, whose battle with IRD began with a $60,000 GST refund that turned into an assessment for $1 million.  He was bankrupted, and in the process lost his partner and six years of his life.  The story is told in his bestselling book ‘Be Very Afraid’, now adapted into the movie ‘We’re Here To Help’.  Following Dave’s case, and my involvement in it, we managed to get some change to IRD’s culture.

Most weeks I am contacted by someone at their wits end trying to sort out problems with IRD.  IRD now put a fresh pair of eyes across the case to review it.  They no longer just stick to their original position, no matter what – we can thank Dave Henderson for that.

But I think we can do better.

It’s time we had an independent IRD Ombudsman to to investigate cases where taxpayers feel mis-treated, or the department has mis-used its powers.  We need someone to stand up for the rights of taxpayers.

After all, it’s taxpayers who are paying our way.  It’s time we recognised that with some proper respect.