Response from Commissioner for IRD

Inland Revenue

Te Tari Taake

Office of the Commissioner

National Office

55 Featherston Street

PO Box 2198

Wellington 6140

New Zealand

Telephone 04890 1846

Facsimile 04 978 1627

7th of December 2015

Mr Marc Rex Pawley

C/-Box 162

Kaiwaka 0542

Dear Mr Pawley

Thank you for your letter of 22 November 2015 to the Commissioner of Inland Revenue , Ms Naomi Ferguson . I note that a further copy of your letter was forwarded to this office from the Minister of Revenue's office . I am responding to both letters.

I have noted your comments and confirm that all arguments advanced by those promoting theories similar to those you write, that taxes imposed under the Inland Revenue Act are not legal , have all been rejected by the Courts and found to be without foundation. I also take this opportunity to remind you that taxes levied by the Government are to cover the costs of roads, hospitals, education, welfare and security that New Zealanders enjoy.

Taxes are levied by statute. Not by contract or agreement . I refer you to Paragraph 40 of Judge Barber's decision in the Commissioner of Inland Revenue v Boyton [2001] DCR1126 (2001) 20 NZTC 17,389 which was later confirmed by the High Court :

" A theme of the defendant's submissions seemed to be that his liability in this case is a matter of "contract" , presumably with the State or the IRD. In fact, taxation is levied by Parliament and is covered by Statute and not by any system of contracts. "

The general legislative authority for imposing and collecting taxes lies in the varous Inland Revenue Acts tht are listed in the schedule to the Tax Administration Act 1994. Since tax obligations are imposed by stature and not by contract, persons are not able to opt out of them.

Those who do not pay the tax with is due from them or otherwise do not meet their obligations under the tax Acts will find themselves in breach of the law and subject to the penalties imposed by the law. Inland Revenue aims to make it easy for people to manage their own tax and social policy obligations and entitlements by providing information , assistance and tools so they can do it themselves on a voluntary basis.

Finally, I can confirm that a person's obligation to pay tax does not breach and/or contravene any of the Acts mentioned in your letter. You have outstanding income tax returns for the 2008 to 2015 tax years. Please make immediate arrangements to file these.

I have also asked that further checks are made in this regard.

Thank you for writing.

Yours sincerely

Tony Donohue

Manager, Commissioner's Correspondence

"In confidence - Inland Revenue Highly Protected"