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Tax amnesty plan to claw back cash

Ongoing concerns: Heather Thomas, the Auditor-General

The effort to collect overdue taxes is to be stepped up, the finance minister warned yesterday.Curtis Dickinson said a tax amnesty could also be introduced to help claw back some of the cash owed by taxpayers.Mr Dickinson said taxpayers would be given nine months to settle 75 per cent to 85 per cent of the total amount overdue by more than 90 days under the amnesty.He added: “The remaining 25 per cent to 15 per cent will be forgiven.”Mr Dickinson said in his Budget Statement: “The Government will use all available means to collect overdue taxes, thereby improving the Government’s cashflow.“To this end, the Government is considering ways to supplement and enhance the debt collection function within government and is working through the procurement process to engage relevant service providers that can assist with this matter.”Auditor-General Heather Thomas had highlighted taxpayer debts as a concern in her annual report for 2017-18.She said the amount of payroll, hotel occupancy, corporate services and land taxes greater than 90 days in arrears was $82.5 million in March 2017, up from $59.3 million in March 2012.Ms Thomas recommended a new plan to tackle “significant taxpayer indebtedness”.She said: “Measures to reduce taxpayer indebtedness to Government have been largely unsuccessful.“More effective collection of outstanding revenue by Government would help reduce the need for borrowing along with its associated financial cost.”