Smith Lockwood: Questions for Oral Answer — Questions to Ministers 
Smith Lockwood: Questions for Oral Answer — Questions to Ministers 
[Volume:632;Page:4493] 
9.  
Dr the Hon LOCKWOOD SMITH (National—Rodney) 
 to the  
Minister of Revenue 
: Does the Inland Revenue Department investigate reports of tax evasion or tax avoidance that are reported in the media? 
Hon PETER DUNNE (Minister of Revenue) 
: 
 The Inland Revenue Department does take into account public information in determining whether any investigation activity is warranted. 
Dr the Hon Lockwood Smith 
: Would the Inland Revenue Department investigate—to ensure correct tax treatment—a high-profile case of trading in properties such as the purchase by Taito Phillip Field on 6 May 2004 of what appears to be at least his sixth house at 51 Church Street Otahuhu for a price of $259000 and its subsequent sale for $395000 in August 2005? 
Hon PETER DUNNE 
: I refer the member to my original answer. I also remind him that under the Tax Administration Act the discussion or disclosure of any individual’s tax affairs is protected by confidentiality and is certainly not appropriate to canvass in this House. 
Dr the Hon Lockwood Smith 
: Where the Inland Revenue Department became aware that a taxpayer had claimed to be receiving no rent for a property but was in fact receiving rent for that property—as is the case with Taito Phillip Field and his former property at 51 Church Street Otahuhu—would the department check whether the rent had been accounted for correctly for taxation purposes? 
Hon PETER DUNNE 
: When the Inland Revenue Department conducts an investigation into matters such as the member has described all aspects will be considered. But I repeat: the tax affairs of any individual are not for disclosure in this House. In fact as Minister I am not made privy to those. 
Dr the Hon Lockwood Smith 
: If the Inland Revenue Department became aware that controversy surrounded the employment of workers such as in the case of the Thai immigrants working on various properties of Taito Phillip Field would the department investigate to check whether either PAYE was properly deducted by the employer or tax returns were properly filed by a contractor; or does his department condone the cash economy that it appears Taito Phillip Field may have been part of? 
Hon PETER DUNNE 
: The Inland Revenue Department certainly does not condone the cash economy. I repeat what I said previously: the tax affairs of individuals are confidential. It is not for me to disclose those. Indeed officials of the department and I are prohibited from doing so by the provisions of the relevant legislation. 
Dr the Hon Lockwood Smith 
: Where a public report such as the Ingram report establishes that Taito Phillip Field paid $300 in cash to a Ms Thaivichit for work done on a house he owned at 2A Prangley Avenue Mangere will his department investigate the extent to which Taito Phillip Field’s housing business activities have been conducted in the illegal cash economy; if not why not? 
Hon PETER DUNNE 
: At the risk of repetition I give the answer I have given to previous questions: matters relating to the tax affairs of individuals are confidential.