1 00:00:00,000 --> 00:00:01,680 Speaker 1: If you think the job numbers don't sober you up. 2 00:00:01,720 --> 00:00:04,640 Speaker 1: What about the money? Oh to IID business is currently 3 00:00:04,640 --> 00:00:07,600 Speaker 1: own more than one point four billion. This is GSTN paye. 4 00:00:07,800 --> 00:00:09,799 Speaker 1: That's from twenty five tax year. Do you know they're 5 00:00:09,800 --> 00:00:12,799 Speaker 1: still owed forty eight million from twenty eighteen? Robin Walker tacks, 6 00:00:12,800 --> 00:00:14,840 Speaker 1: partner at Deloitte, Of course back will this Robin very 7 00:00:14,840 --> 00:00:15,560 Speaker 1: good morning to you. 8 00:00:16,280 --> 00:00:16,760 Speaker 2: Good morning. 9 00:00:16,880 --> 00:00:18,720 Speaker 1: Is this any worse than normal if you go back 10 00:00:18,760 --> 00:00:19,800 Speaker 1: over years and decades? 11 00:00:20,880 --> 00:00:23,400 Speaker 2: Uh, what's hard to tell from just looking at the reporting, 12 00:00:23,400 --> 00:00:26,320 Speaker 2: because they report on what's still outstanding from prior years. 13 00:00:26,520 --> 00:00:28,920 Speaker 2: Do they understand like the actual level of debt is 14 00:00:29,120 --> 00:00:31,480 Speaker 2: increasing if you look at a year on year the 15 00:00:31,520 --> 00:00:34,960 Speaker 2: amount that's being left unpaid. So definitely a concerning trend. 16 00:00:35,240 --> 00:00:37,239 Speaker 1: How much of this is COVID all that money that 17 00:00:37,280 --> 00:00:39,279 Speaker 1: flushed out that we didn't think we'd ever pay back 18 00:00:39,280 --> 00:00:42,120 Speaker 1: and as it turns out we're not well. 19 00:00:42,200 --> 00:00:44,560 Speaker 2: I think that's that's when it all started to turn 20 00:00:44,600 --> 00:00:48,159 Speaker 2: in terms of tax debt really taking off because there 21 00:00:48,200 --> 00:00:51,360 Speaker 2: was a bit of a mandate to say be kind 22 00:00:51,440 --> 00:00:54,480 Speaker 2: and you know, give people some breathing space and actually 23 00:00:54,480 --> 00:00:56,920 Speaker 2: give them some more money. Is like a small business 24 00:00:56,920 --> 00:00:58,920 Speaker 2: cash flow loan would be a bit weird to say, 25 00:00:59,120 --> 00:01:01,680 Speaker 2: I d already giving out a loan to them but 26 00:01:01,720 --> 00:01:04,120 Speaker 2: then asking them to pay back their tax at the 27 00:01:04,160 --> 00:01:04,600 Speaker 2: same time. 28 00:01:04,760 --> 00:01:08,200 Speaker 1: Yeah, construction, I'm assuming is worse than most if you're 29 00:01:08,280 --> 00:01:09,319 Speaker 1: breaking it down by sector. 30 00:01:10,760 --> 00:01:14,080 Speaker 2: Yeah, certainly in absolute numbers. So there's almost a billion 31 00:01:14,120 --> 00:01:19,280 Speaker 2: dollars of tax outstanding from construction. So hard to know 32 00:01:19,360 --> 00:01:22,039 Speaker 2: how that sort of stacks up against the other industries 33 00:01:22,080 --> 00:01:24,320 Speaker 2: because you don't have the details of how many taxpayers 34 00:01:24,319 --> 00:01:27,200 Speaker 2: are in that cluster, but you're definitely an alarming sector. 35 00:01:27,720 --> 00:01:29,440 Speaker 1: How do they handle this, I mean, how much is 36 00:01:29,480 --> 00:01:31,720 Speaker 1: on the books as an ode that they think will 37 00:01:31,760 --> 00:01:33,920 Speaker 1: be paid versus if you were, you know, having a 38 00:01:33,959 --> 00:01:35,479 Speaker 1: quiet drink in a corner you go. You know you're 39 00:01:35,480 --> 00:01:36,480 Speaker 1: never going to get that, don't you. 40 00:01:38,000 --> 00:01:39,959 Speaker 2: They do have to do all this sort of assessment 41 00:01:40,000 --> 00:01:43,720 Speaker 2: as part of their annual reporting. So of that one 42 00:01:43,720 --> 00:01:46,280 Speaker 2: point four that's outstanding, they think that one point two 43 00:01:46,400 --> 00:01:48,760 Speaker 2: is collectible. At one hundred and eighty five million is 44 00:01:48,840 --> 00:01:50,560 Speaker 2: uncollectible already. 45 00:01:50,400 --> 00:01:51,960 Speaker 1: Okay, And how much of that gets put on a 46 00:01:52,000 --> 00:01:53,560 Speaker 1: payment system when you come to me and say you 47 00:01:53,600 --> 00:01:55,480 Speaker 1: owth three hundred thousand dollars and I say I'll give 48 00:01:55,480 --> 00:01:56,600 Speaker 1: you seventeen dollars a week. 49 00:01:58,000 --> 00:02:00,160 Speaker 2: I think IODA has become a lot more pre I 50 00:02:00,280 --> 00:02:03,120 Speaker 2: do that contacting people as soon as possible to put 51 00:02:03,160 --> 00:02:06,520 Speaker 2: them on payment plants. I think key thing is for 52 00:02:06,600 --> 00:02:08,720 Speaker 2: anybody that does have any tax debt is get in 53 00:02:08,800 --> 00:02:12,560 Speaker 2: contact with ID as soon as possible, because as soon 54 00:02:12,560 --> 00:02:15,919 Speaker 2: as you pay it off, the sooner bad things will 55 00:02:15,919 --> 00:02:19,799 Speaker 2: stop happening to you. So if you're not paying your tax, 56 00:02:19,919 --> 00:02:22,360 Speaker 2: you're getting interest at ten point eight eight applied to 57 00:02:22,440 --> 00:02:25,399 Speaker 2: all of that, you've got a five percent accumulative late 58 00:02:25,440 --> 00:02:29,079 Speaker 2: payment penalty being applied. The problem is not actually going away. 59 00:02:29,880 --> 00:02:32,120 Speaker 2: You need to pull your head out of the sand 60 00:02:32,240 --> 00:02:33,760 Speaker 2: and face your problems. 61 00:02:33,840 --> 00:02:35,880 Speaker 1: Get on your Robin nice to talk to you as always, 62 00:02:35,919 --> 00:02:38,960 Speaker 1: Sooner bad things we'll stop happening, so bround things will 63 00:02:39,000 --> 00:02:39,880 Speaker 1: stop happening to you. 64 00:02:40,440 --> 00:02:43,360 Speaker 2: For more from the Mic Asking Breakfast, listen live to 65 00:02:43,440 --> 00:02:46,520 Speaker 2: news talks that'd be from six am weekdays, or follow 66 00:02:46,560 --> 00:02:48,120 Speaker 2: the podcast on iHeartRadio.