IRD operates above our Privacy Act: it can raid
my business premises without warrant; it will never be denied a warrant to raid my home; it can demand my bank statements from the bank and my bank will acquiesce without my knowledge; I have no
right to remain silent when an interview is 'requested' by IRD; and as a
taxpayer the burden of proof is turned against me - unlike for an accused
murderer, burglar, et al, I am not innocent until proven guilty before the tax
courts, IRD can simply assess me and I have to prove my innocence, so breaching
a fundamental tenet of a free society.
Some
years ago I wrote how the Revenues around the world routinely snoop
on social media for thought crimes - if you look at the footnoted update, you'll see IRD read that post.
Yesterday
I
wrote on how your bank is now required to snoop on you under Judith Collins’
Anti-Money Laundering and Financing of
Terrorism Act:
RIP the economy (and any privacy you ever had). This National government
is generating more red tape than the previous Labour one did. To
capture a minor subset of transactions, every single commercial and private
transaction, be it financial (where your bank has to report you to police if
irregularities are found), or property, are being delayed, and weighed done
by cost on cost on cost on penalty of the snitch society. God I
want out.
Over
the weekend Rodney Hide wrote a chilling piece on the investigation on him
by the Official Assignee, covertly targeting his friends and family:
The interesting
thing for me is how upsetting it has proved to be. I have nothing to hide. I am
well used to being in the public spotlight. It was once part of my life to have
others talk about me in less than flattering terms.
I would have
thought it no big deal to have a state agency do similar.
But I have found
it extremely disturbing to have friends and colleagues compelled to appear
under threat of arrest and answer questions about me and my family put to them
by a private investigator under contract to the Government.
Oh, and to have
those friends and colleagues warned not to tell me what they were asked.
It's extremely invasive
and sinister. It's what we expect of totalitarian regimes, not free and
democratic societies such as ours.
So
of course today we find the police have taken their pointless war on drugs to your
Facebook page:
The monitoring has
been exposed by members of a blackmarket Facebook group, who complained of
receiving letters out of the blue from police, warning them they were being
watched.
One unidentified
user received a letter from the Canterbury Organised Crime Squad, dated July
15, warned that their membership of a group suspected to be aiding illegal drug
deals had been noticed.
There
are no parts of our lives not being surveiled and intruded upon. From a letter
to the editor of today’s Press, penned by no other than Sir David Hay:
ECan employees who screen for smoke from wood
burners invade our domestic lives and put people who try to heat their homes
affordably at risk of a $750 fine. The invitation for neighbours to inform on
neighbours reeks of a totalitarian state.
But
hey, the sacrifice of our private lives is justified: we’re catching the tax
evaders, we’re catching the money launderers, we're catching the polluters to ensure they don't heat themselves, and we’re catching the druggies.
No.
For
freedom lovers, the price has been too high. Those who’ve read George Orwell’s 1984 will remember the proles thought
everything largely fine in the prison cells of their minds, it was only those who had foot-tripped over the State who figured out the nature of the entrapment, and the total loss of
liberty that defined them. Which explains why the below photo is not from that novel,
it’s from a street in England, courtesy HMRC – though I think I know what they’re
using as their manual:
Next
time you’re updating your Facebook, you be careful out there. Don’t go thinking
you’re living in a free country. That, and we all live in the snitch society now. Forget the threat of external terrorism, we have an internal surveillance state which is far beyond the bounds of what a free, western society should have settled for without (at least) civil rebellion.
If it burns and don't give off cyanide and suchlike, it goes on the fire. I have the local Lordship's permission to pick up firewood from his land. That goes back to Magna Carta, how goes that in this modern, progressive age? If the buggers want to sniff my chimney they'd better be mega-bong tested first! Silver birch will send them to sleep, cherry will give them a headache, and Spanish chestnut will spit at them.
ReplyDelete5759
Definitely. Plus what's the greatest health hazard: smoky air which you're hardly out in, or cold homes?
DeleteThis comment has been removed by a blog administrator.
ReplyDelete(Removed only because a double up with post above :) )
DeleteHi Mark
ReplyDeleteI'd be interested in reading discussions on:-
1. The legalities/tax implications of NZers using crypto currencies.
2. How a NZer can legally not file tax returns.
Any chance you can blog on these topics without getting crucified by the IRD?
Cheers
Reed
I can answer the first directly. Crypto currencies aren't illegal in NZ. However, of course, any business, et al, transaction that generates income otherwise taxable, remains taxable whether it is performed by business cheque/transfer, cash, barter or crypto-currency. We run a self-assessed tax system meaning it is up to the individual to declare all their taxable income; if they don't and are found wanting, IRD will throw the book at them and they will be crushed by first penalties and interest, and if big amounts involved, probably criminal prosecution. So crypto-currency is a non-issue, IRD views it as no different to any other form of exchange. (In US IRS have issued a paper to say that increases in value of the crypto-currency - like currency gains - is likewise taxable.
DeleteIt's a little similar to the misconceived notions people have about using tax havens. NZ's international tax regime is pretty vicious: if you are a NZ tax resident (via day counting rules *or* permanent place of abode [meaning you can be a NZ tax resident even if you aren't here for a year, or more]) then you have to declare your worldwide income and pay tax on it in NZ (also note the CFC and FIF regimes). Just because the tax haven might generate no paper trail, and some (fools) might take it into their heads not to declare, doesn't change the legality: income earned there will be taxable for NZ tax residents. As with crypto-currency, although the mish mash of tax law is confusing (often around deductions and how income is calculated), the liability to pay tax is unforgivably black and white.
Regarding (2) similar answer. There are many people (for example straight out salary and wage earners wholly in the PAYE system) who don't legally have to file a return - but these are in the system. If you don't pass the criteria for only having to have a 'personal tax summary', and therefore having to file an IR 3, then in every case you have to legally file an IR3 to declare business, trust, investment et al, income.
The tax system is ruthless, and on liability, painfully clear cut. The politicians ensure that because the tax system funds their wet dreams of the surveillance state (and junkets).
In some cases this reply is simplified, but in broad strokes you get the point?
Okay, (1) I understand.
DeleteRegarding (2) what if a person makes no income (e.g. someone who lives in a commune or someone who just has money) would they still have to file a tax return? What would the IRD do to them if they didn't file anything?
So long at their 'cash' is earning no investment income there would be no liability to file a tax return.
DeleteBut why would they not be earning at least some income?
Note if you are only earning interest income and you've set your PIR at highest rate, or all your investment is in a PIE, then you still won't have to file a tax return (although you are of course being taxed as source).
Note also a standard audit technique is to look at the assets owned by an individual, and their lifestyle, and if declared income does not seem to be up to either, or both, to assess/query on that basis.
You thinking of sticking your money in a mattress on a commune?