NZ tax officials correct blunder, economy back in black
New Zealand tax officials made an embarrassing blunder this month that wrongly plunged the government's budget balance into the red for the first time in 15 years, the finance minister said on Tuesday.
By Agencies |
WELLINGTON: New Zealand tax officials made an embarrassing blunder this month that wrongly plunged the government's budget balance into the red for the first time in 15 years, the finance minister said on Tuesday.
Finance Minister Michael Cullen said ``unacceptable'' human error caused tax officials to botch calculations of tax revenues for seven months through January.
The mistake led the Treasury Department to erroneously report that returns to the government had fallen 700 million New Zealand dollars (US$560 million; euro356 million) below forecast.
The initial Treasury report showed the government's operating balance in the seven months to January had a deficit of NZ$394 million (US$316 million; euro207 million).
Treasury later revised the figure upward by NZ$600 million (US$480 million; euro306 million) _ putting the government's operating balance back in the black by some $NZ200 million (US$160 million; euro102 million), Cullen said.
Cullen said the tax commissioner and the head of treasury had apologized to him for a ``simple mistake'' in using an incorrect tax forecasting figure that ``flowed ... through into the final outcome.''
Senior officials immediately appointed a review team to investigate the blunder.
``It won't happen again,'' Inland Revenue Commissioner Robert Russell vowed.
Finance Minister Michael Cullen said ``unacceptable'' human error caused tax officials to botch calculations of tax revenues for seven months through January.
The mistake led the Treasury Department to erroneously report that returns to the government had fallen 700 million New Zealand dollars (US$560 million; euro356 million) below forecast.
The initial Treasury report showed the government's operating balance in the seven months to January had a deficit of NZ$394 million (US$316 million; euro207 million).
Treasury later revised the figure upward by NZ$600 million (US$480 million; euro306 million) _ putting the government's operating balance back in the black by some $NZ200 million (US$160 million; euro102 million), Cullen said.
Cullen said the tax commissioner and the head of treasury had apologized to him for a ``simple mistake'' in using an incorrect tax forecasting figure that ``flowed ... through into the final outcome.''
ADVERTISEMENT
Senior officials immediately appointed a review team to investigate the blunder.
``It won't happen again,'' Inland Revenue Commissioner Robert Russell vowed.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
