Make a submission for tax transparency

Oppose the repeal of s 17GB

What’s happening?

The government is proposing to make the tax system less transparent as part of its new omnibus Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill.

In particular, part of the Bill seeks to repeal Section 17GB of the Tax Administration Act 1994. This was the provision that enabled the IRD to conduct its groundbreaking research into high net worth individuals in 2023, which revealed the extreme inequality between how much tax the most well-off New Zealanders pay compared to average workers. 

Why does it matter?

Without good information it is impossible to understand the full impacts of the tax system. Section 17GB has enabled Inland Revenue to carry out vital research on how the tax system operates, which can support policy for better and fairer taxation. 

By repealing Section 17GB, the government will significantly reduce the transparency of the tax system, tying Inland Revenue’s hands and making it harder to carry out similar research in the future.

Want else is problematic about this Bill? Check out the submission from Better Taxes Coalition member Tax Justice Aotearoa here.

Take action: Make a submission

You can submit on the proposed bill up until 23 October.

We’ve put key points below to help with your submission – or, for more information, you can read the feedback Tax Justice Aotearoa provided in response to earlier engagement on this proposal.

Key tips: 

  • Your own words and point of view are enough. Your submission can be as long or as short as you like – it can just be a sentence saying you oppose the repeal of Section 17GB.
  • Try to use your own words as much as possible and tell the Government to abandon this part of the Bill.
  • If you want to go into more detail, below is a basic structure your submission could follow, and we’ve linked more information below.

How to structure your submission:

1. Start your submission with your position

  • E.g. "I oppose the repeal of Section 17GB of the Tax Administration Act 1994 and ask the government and the Select Committee to retain this section…’"

2. Make your recommendation  

Tell the Select Committee why you OPPOSE the repeal of this section. We recommend putting this in your own words and making it your own. Tell your story and why this matters to you!

You can start by saying who you are, what you do (for example “I am a parent, I am a teacher…”), and what you value about living in Aotearoa New Zealand (eg. Fairness, looking after one another).

Then you could make some points to support your case. You could draw on the points below:

  • Section 17GB is crucial for evidence-based policy making. The reason that s 17GB was introduced in the first place was because the existing legislation did not enable Inland Revenue to collect enough information about the tax system. Tax policy should be based on reliable information and evidence: repealing s 17GB will prevent that crucial evidence from being collected.
  • Repealing s 17GB will reduce transparency and accountability in our tax system. Without good information it is impossible to understand the full impacts of the tax system. A 2018 Tax Working Group report notes that New Zealand’s tax system compares poorly with other tax systems in terms of transparency, and is less transparent than Australia’s. It is in the public interest to retain s 17GB, to enable better information to be collected about New Zealand’s tax system.  
  • It is not clear what problem the repeal is trying to solve. There were no reported problems during the one research process in which s 17GB has been used (the High Net Worth Individuals project.) No formal complaints were received and Inland Revenue appears to have conducted the process with integrity. The current wording of s.17GB provides for sufficient safeguards for the protection of individual privacy and meets the requirements of the Bill of Rights Act. There is no clear rationale for repealing s 17GB.
  • In fact, s 17GB is an important part of solving the unfairness in our tax system. By helping us understand how the tax system impacts people differently, we are better able to find ways to address the imbalance in our tax system, which asks proportionately more of the least well off.
  • Officials have recommended that s 17GB should not be repealed. The Regulatory Impact Statement for the proposed legislation makes it clear that expert advice has recommended that s 17GB be retained. The Minister is acting against expert advice in pushing for this repeal.

3. Explain further (optional)

You could also...

  • Draw on your own interests and what you’re passionate about. You could talk about why you care about transparency and accountability, or how you see taxes contributing to building a better country

4. Make a recommendation for changes you want the select committee to make.

  • E.g., “I recommend the select committee retain Section 17GB of the Tax Administration Act 1994”.

 

Click here to make a submission

 

Finally, let us know you made a submission! 

Email us to let us know you made a submission and feel free to send us your submission. We'd love to hear your perspective on this issue and get a sense of what the select committee is hearing from the public.

 

Have questions about making a submission? Get in touch [email protected]