Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

Bee



593 posts

Ultimate Geek
+1 received by user: 109


Topic # 85483 20-Jun-2011 13:13
Send private message

This suggestion may be somewhat illegal but its only hypothetical so just humour me for a while :)

Suppose I got sick of paying back my student loan and decided to fill in the form and give it to my employer  to change my tax code.

a) Do you think I would actually get away with it at all?  and if so how long before the IRD catches up with me?
b)  Once they actually catch me would there actually be any fine or penalty imposed say for intentional fraud or "Tax evasion"  or would they just demand the overdue amount repaid immediately?





 

View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2
1598 posts

Uber Geek
Inactive user


  Reply # 483155 20-Jun-2011 13:17
Send private message

Rather silly of you to have posted that on here, now they're out to get you. Wink

1949 posts

Uber Geek
+1 received by user: 305

Trusted

  Reply # 483161 20-Jun-2011 13:26
Send private message

They will catch up with you on that, the question is when. Might not be until the end of the tax year, depends how their systems work.

Might not be a criminial action, but would likely breach your loan contract, and im sure there would be some sort of penalty for that.

IANAL

780 posts

Ultimate Geek
Inactive user


  Reply # 483166 20-Jun-2011 13:34
Send private message

Its not tax evasion.

I'm fairly sure they cannot jail you for not repaying a loan. That would be the case is Dubai, but not here.

But, considering I have paid for your loan, I'd say pay it back and not even 'hypothesize'.

Probably the worst the IRD could do is to bankrupt you.




584 posts

Ultimate Geek
+1 received by user: 90


  Reply # 483171 20-Jun-2011 13:42
Send private message

Your employer will probably get a letter from the IRD stating that you are using an incorrect tax code. It wouldn't be hard for the IRD to spot this and it's probably automated - you earn over the threshold and have a student loan.

3282 posts

Uber Geek
+1 received by user: 208

Trusted

  Reply # 483172 20-Jun-2011 13:43
Send private message

They will definitely figure it out sometime, and their reaction to it will depend on a number of factors I imagine.

If you started at a new job and "accidentally" gave your employer the wrong code then you'd probably get away with paying the difference and moving to the correct code next year.

If you tell your current employer that you've finished paying your student loan and want to move to a different code then I would think the IRD would look less kindly at that kind of behaviour.

The IRD website states that if you're using the wrong code, they will write to your employer and get them to change the code.

Bee



593 posts

Ultimate Geek
+1 received by user: 109


  Reply # 483182 20-Jun-2011 13:57
Send private message

Common sense says thats how it should work but does it work that way in reality? This is a govt department after all.  The same department that chased me aggressively for 6 months for a repayment of less than $100. They sent 2 or 3 reminders, and then at the end of the 6 months they just wrote it off (presumably because it was under $100?)  

Just to be clear - At no time was this amount overdue - it was always due to be paid in 6 months time - so I intended to pay it on the last due date.  I just happened to forget about it until 2 days after that date and discovered then that it had been "cancelled"


This is the taxpayers money in Action!!


Mad Scientist
18619 posts

Uber Geek
+1 received by user: 2365

Trusted
Lifetime subscriber

  Reply # 483187 20-Jun-2011 13:59
Send private message

They will find out at the end of the tax year and then send you an appropriate bill for your income. If you don't pay up they have the right to take you to court but it's up to them.

3574 posts

Uber Geek
+1 received by user: 2087

Trusted
Spark NZ

  Reply # 483189 20-Jun-2011 14:01
Send private message

Kraven: Your employer will probably get a letter from the IRD stating that you are using an incorrect tax code. It wouldn't be hard for the IRD to spot this and it's probably automated - you earn over the threshold and have a student loan.


This is the correct answer, but it's a totally f^2ked up situation anyway.

After I FINISHED paying off my student lona and changed my tax code back to 'M', the IRD changed it BACK to 'M SL' _TWICE_ in the next 3 months, despite my loan being paid off.

Unbelievable incompetence demonstrated personally to me... I think they're likely to detect tax code changes and require the employer to change it back - they are entitled to, and the employer must immediately comply with any IRD request. It's up to you to fix it up after they stuff it up.

Cheers - N

3282 posts

Uber Geek
+1 received by user: 208

Trusted

  Reply # 483192 20-Jun-2011 14:10
Send private message

Not quite true, they don't HAVE to change the tax code immediately.

http://www.ird.govt.nz/payroll-employers/make-deductions/emp-deductions-taxcodes-correcting.html

3574 posts

Uber Geek
+1 received by user: 2087

Trusted
Spark NZ

  Reply # 483197 20-Jun-2011 14:16
Send private message

bazzer: Not quite true, they don't HAVE to change the tax code immediately.

http://www.ird.govt.nz/payroll-employers/make-deductions/emp-deductions-taxcodes-correcting.html


They generally have to follow the IRD direction, and in my case even when I was able to show my payroll people that the IRD were wrong, they still have to change the tax code and get me to contest it with the IRD. Twice.


Cheers - N

283 posts

Ultimate Geek
+1 received by user: 2


  Reply # 483198 20-Jun-2011 14:16
Send private message

Your employer will get a tax code change letter and you will get a bill for the outstanding student loan payment amount at the end of the tax year. 

If you don't pay that, it will have penalties etc applied, just like any tax bill.  

3158 posts

Uber Geek
+1 received by user: 798


  Reply # 483201 20-Jun-2011 14:22
Send private message

wreck90: Its not tax evasion.
I'm fairly sure they cannot jail you for not repaying a loan.


Under student loan legislation they can only fine you for not paying money back, *but*,  but they can Jail you for including incorrect information on the form which declares your tax code. ( Its an IRD form)


Tax Administration Act 1994

143B Evasion or similar offence

Evasion or similar offence

(1) A person commits an offence against this Act if the person—

(c) knowingly provides altered, false, incomplete, or misleading information (including tax returns and tax forms) to the Commissioner or any other person in respect of a tax law or a matter or thing relating to a tax law; or

 (4) A person who is convicted of an offence against subsection (1) or subsection (2) is liable to—

(a) imprisonment for a term not exceeding 5 years; or

(b) a fine not exceeding $50,000; or

(c) both.



780 posts

Ultimate Geek
Inactive user


  Reply # 483209 20-Jun-2011 14:51
Send private message

Yeah, the IRD stuffs things up frequently.

I was overseas for a number of years and had deregistered from the tax system.

When I got back and re-registered, the IRD got really confused and classified me as a NZ resident and that I had not filed tax returns for a number of years.

They filed a bunch of penalties and things against me including cancellation of filing extensions (even though I had proof/letters that the IRD knew i was not required to file them).

After months of wrangling, I managed to get the financial penalties reversed but I could not get them to reinstate my filing extension - they just refused saying I had not met deadlines . No amount of talking and explaining how I was not even required to file would get them to change their minds.

6314 posts

Uber Geek
+1 received by user: 380

Moderator
Trusted
Lifetime subscriber

  Reply # 483218 20-Jun-2011 15:08
Send private message

Bee: a) Do you think I would actually get away with it at all?  and if so how long before the IRD catches up with me?


I doubt it would even go through, I think their systems would pickup the change even with a student loan.

We just had an employee start with us, and within two weeks we had a letter asking us to change them to MSL (from M).

3571 posts

Uber Geek
+1 received by user: 148

Trusted

  Reply # 483227 20-Jun-2011 15:34
Send private message

Big brother is definitely watching!

 1 | 2
View this topic in a long page with up to 500 replies per page Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

Microsoft Dynamics 365 Business Central launches
Posted 10-Jul-2018 10:40


Spark completes first milestone in voice platform upgrade
Posted 10-Jul-2018 09:36


Microsoft ices heated developers
Posted 6-Jul-2018 20:16


PB Technologies charged for its extended warranties and warned for bait advertising
Posted 3-Jul-2018 15:45


Almost 20,000 people claim credits from Spark
Posted 29-Jun-2018 10:40


Cove sells NZ's first insurance policy via chatbot
Posted 25-Jun-2018 10:04


N4L helping TAKA Trust bridge the digital divide for Lower Hutt students
Posted 18-Jun-2018 13:08


Winners Announced for 2018 CIO Awards
Posted 18-Jun-2018 13:03


Logitech Rally sets new standard for USB-connected video conference cameras
Posted 18-Jun-2018 09:27


Russell Stanners steps down as Vodafone NZ CEO
Posted 12-Jun-2018 09:13


Intergen recognised as 2018 Microsoft Country Partner of the Year for New Zealand
Posted 12-Jun-2018 08:00


Finalists Announced For Microsoft NZ Partner Awards
Posted 6-Jun-2018 15:12


Vocus Group and Vodafone announce joint venture to accelerate fibre innovation
Posted 5-Jun-2018 10:52


Kogan.com to launch Kogan Mobile in New Zealand
Posted 4-Jun-2018 14:34


Enable doubles fibre broadband speeds for its most popular wholesale service in Christchurch
Posted 2-Jun-2018 20:07



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.