Explainer: The Government's Traffic Light System For Sanctioning Tax Dodgers

So, tell me about your government's traffic light system for sanctioning tax dodgers.

I think you mean the government’s traffic light system for sanctioning beneficiaries.

We’ve heard about that already.

That’s because we need to crack down on beneficiaries. They have to play by the rules or there will be consequences, or else. Green. Orange. Then – boom! Red.

‘Traffic light’ sounds a lot like the previous government’s Covid traffic-light system.

No no, that was a ridiculous system.

Why?

Because that was tough on ordinary hard-working Kiwis. This is only tough on beneficiaries.

It also sounds a lot like Three Strikes.

Well, sadly that name had already been taken, but yes. Beneficiaries must meet their obligations. And if they don’t meet their obligations, red-light ‘em up.

Tax dodgers have to meet their obligations too.

What obligations would those be?

Not dodging tax for a start. You’d agree that tax dodgers not meeting their obligations actually costs the country a whole lot more than beneficiaries not meeting their obligations?

Only in the mathematical sense.

So, tell me about your government’s traffic light system for sanctioning tax dodgers.

Well, it’s not exactly a traffic light.

What is it then? Is it a give-way sign?

Not so much.

Is it a slippery-when-wet sign?

That’s not how I would categorise it.

How would you categorise it?

Well, have you heard of the speed limit on the German autobahns?

There is no speed limit on the German autobahns! You can just do whatever speed you want. In some places, anyway.

Yes, it’s those places I’m talking about.

Wait. You’re saying tax dodgers can do what they like and you won’t do anything to stop them?