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Speaker 1: Now Idea is having a very successful time of it.

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Speaker 1: They're cracking down on people who own money and finding

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Speaker 1: quite a lot of it. And the six months to December,

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Speaker 1: thirty six hundred audits were opened. That's a fifty percent

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Speaker 1: increase on the year prior. As a result, they've collected

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Speaker 1: an extra six one hundred million dollars. To Lloyd Tax partner,

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Speaker 1: Robin Walker's back with us, Robin Morning, Good morning. I

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Speaker 1: was surprised that the numbers yesterday won the audits and

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Speaker 1: be the amount of money they found. Will you, I mean,

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Speaker 1: is this something? Why haven't they been doing this all along?

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Speaker 2: Well, that's a very good question. So there was a

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Speaker 2: period when a lenner of new was introducing its new

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Speaker 2: computer system, which was basically immediately followed by COVID, where

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Speaker 2: their attention was diverted elsewhere. And so this is really

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Speaker 2: a return to the days of old where we've got

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Speaker 2: investigators out there, you know, shaking people down trying to

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Speaker 2: find all of that unpaid tax.

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Speaker 1: Is this avoidance or evasion? I mean, are these people

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Speaker 1: going I didn't realize I'm sorry versus oh yeah, you

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Speaker 1: got me.

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Speaker 2: Oh. It can be a whole mix of things. So

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Speaker 2: a lot of comply answers can be innocent, So it's

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Speaker 2: just a misunderstanding about how the tax rules. Taxpayers and

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Speaker 2: iod can have different views on things. Some of it

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Speaker 2: will be deliberate, and that's where you'll see Inland Revenue

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Speaker 2: targeting particular sectors and focusing on areas to try to

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Speaker 2: find those non compliant taxpayers.

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Speaker 1: Do they take the money if it means the business

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Speaker 1: goes to the wall? We seeing businesses liquid.

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Speaker 2: Certainly Inland revenues increased reported that they've increased the number

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Speaker 2: of liquidations that they've undertaken. And the other interesting thing

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Speaker 2: which they've noted in their press release is that they

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Speaker 2: are looking at what assets does the taxpayer have available

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Speaker 2: to them and if they've got money that or assets

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Speaker 2: that they could be selling or refinancing to pay their

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Speaker 2: tax bill. They're saying, sell those assets because you owe

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Speaker 2: the taxpayer and the.

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Speaker 1: Nationally as an expert, they can legally do that. If

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Speaker 1: entity A owes money, but I've got entity B and C,

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Speaker 1: they can force me to do something with B and

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Speaker 1: C to settle A.

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Speaker 2: Well, they can force they can do things to taxpayer

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Speaker 2: A to encourage them to find the money to resolve that,

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Speaker 2: so they can have a more heavy handed approach to

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Speaker 2: collecting there, or they can be more lenient and enter

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Speaker 2: into installment arrangements and make life a bit easier for people.

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Speaker 2: So there's a range, and generally the more cooperative a

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Speaker 2: taxpayer is, the nicer I ad will be in return.

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Speaker 1: Okay, is this low hanging fruit, the six hundred million

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Speaker 1: and they're going to be working hard from here? Or

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Speaker 1: is this just riches galore?

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Speaker 2: I think because we've had this period of not seeing

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Speaker 2: a lot of audits, there's sort of a lot of

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Speaker 2: fruit to be picked at the moment, but there's you know,

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Speaker 2: you'll reach the point of diminishing returns. So at the

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Speaker 2: moment there's there's plenty of you know, cushions to look

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Speaker 2: behind to find things, but you know at some point

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Speaker 2: that won't necess serially be the case. I mean, I've

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Speaker 2: done a little back of the envelope calculation, which may

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Speaker 2: or may not be accurate. That's six hundred million, I

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Speaker 2: think looks to be about eleven dollars for every dollar

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Speaker 2: that's invested, so very good return on their investment. Historically,

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Speaker 2: in land revenue clicks around about eight dollars for every

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Speaker 2: dollar that they spend on investigation activity, so you know

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Speaker 2: it's well worth the efforts. So long as you know,

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Speaker 2: like I said, you get to the point of diminishing returns.

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Speaker 1: Great stuff, Robin, appreciate your insight, Robin Walker, who's with

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Speaker 1: the Deloitte Deloittes tax partner. I note there were seven

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Speaker 1: hundred and seventy unannounced visits to vape and boo shops,

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Speaker 1: which doesn't surprise me. I'd go looking personally at the

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Speaker 1: bubble tea. You've seen how many bubble tea places there

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Speaker 1: are around that count be lived for more from the

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