NZ Wants $350m From Australian Taxpayers
Announcement posted by Shape Your Business 06 Feb 2014
New Zealand trained them. Now they want their money back.
Sydney-based New Zealand tax agent Mike Reddy warned Kiwis working in Australia who were in default of their student loans to seriously consider contacting Inland Revenue.
Top ranking ministers, including New Zealand Prime Minister John Key, are meeting with their Australian counterparts, including Australian PM Tony Abbott, hoping the Australians will open the door to tax records so Inland Revenue can locate ex-pats who owe approximately $350m (A$315m) in overdue payments.
Australians working in New Zealand owe just $20m.
New Zealand authorities believe that, based on previous experience, the contact alone could result in 70% of those in default entering into arrangements to pay.
"Inland Revenue has had a bee in their bonnet for some time now when it comes to recouping student loans from New Zealanders living and working overseas", said Mr Reddy. "Legislation was passed late last year to allow them access to NZ Passport Office information and even arrest delinquent taxpayers at the border.
“If I was behind in my student loan I would be inclined to call them before they called on me".