The Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill includes significant changes to how Inland Revenue collects and shares taxpayer information. The New Zealand Taxpayers’ Union’s submission focuses on protecting taxpayer confidentiality and limiting the expansion of government data-gathering powers.
In our submission, we strongly supported repealing section 17GB, which allows broad and intrusive information collection, and firmly opposed new Ministerial Agreements that would expand data sharing across government agencies. We also called for the removal of existing information-sharing provisions and raised concerns about the lack of proper consultation. At the same time, we supported targeted remedial measures that simplify compliance and improve fairness in specific areas of the tax system.
Trust and confidentiality are fundamental to a functioning tax system. Expanding information-sharing risks turning Inland Revenue into a data hub for government, undermining public confidence and voluntary compliance. Without proper safeguards and scrutiny, these powers open the door to overreach, weakening accountability and the integrity of New Zealand’s tax system.
