"Hardcore" tax avoiders rather than tradies taking cash jobs will be the target of Inland Revenue's extra $78.4 million in funding from the Budget.
IRD is getting more money to chase tax debt on top of the $119.3m over four years it dedicated to this in 2010.
Revenue Minister Peter Dunne said this year's extra money would go to funding more IRD staff to chase purposeful tax dodgers.
"We're not just talking about people who are behind in their payments, we're talking about recalcitrant people who are simply not fronting up to meet their responsibility or who are deliberately seeking to avoid paying tax. It's that hard core we're after," Dunne said.
"This is not witch-hunt stuff. People who are paying their taxes steadily and normally aren't a concern of ours in this regard, it's the people who just wilfully avoid and ignore their responsibilities that we're after and we employ a full range of measures to get to them."
The expected returns show why this was one area the Government was keen to spend more on.
With the money it got from Budget 2010, IRD assessed an extra $86.9m of tax in the property sector and hidden in cash deals such as tips in the hospitality industry and under the table payments to seasonal workers.
It recovered $6.62 for every dollar spent on these investigations and Dunne forecast that this year's extra funding would help recover $345.4m by 2016.
IRD deputy commissioner Arlene White said it would concentrate on reducing the number of outstanding returns and collecting any associated debt.
- © Fairfax NZ News