Crossing the line: IRD admits it asked about politics

Tax collector admits question on sympathies crossed a line, writes Hamish Rutherford.

The Inland Revenue has admitted it should not have asked taxpayers to indicate their political sympathies in a survey on the eve of the release of a crucial tax reform report.

The department is researching the public’s views on globalisation and fairness in the tax system. But questions also included where respondents sit on the political spectrum, prompting debate over whether taxpayers are funding sensitive political polling.

After days of defending the research, Inland Revenue conceded last night that it was wrong to ask the political question.

National’s finance spokeswoman, Amy Adams, planned to complain to the State Services Commission.

‘‘It is deeply concerning that IRD is doing overtly political polling on the eve of the release of the Tax Working Group’s final report,’’ Adams said.

Inland Revenue was forced to reveal details of the $125,000 research project it is undertaking with polling company Colmar Brunton, after repeatedly playing down its significance.

Around 1000 people are being asked questions about their views on Inland Revenue, whether they are generally trusting, believe what they read in the media, pay too much tax or whether public services should get more funding.

A question on where respondents sit on a left/right political spectrum threatens to skirt the department’s legal obligation for political impartiality.

Polling experts said the results could give politicians valuable insight on how different demographics view the tax system, just days out from the release of a major report on possible tax reform, which will recommend that New Zealand introduce a broad-based capital gains tax.

Inland Revenue initially refused to release the polling questions. Group head of communications and marketing Andrew Stott denied they included political leaning questions, but later admitted he had not checked.

Inland Revenue provided the full survey only after the Sunday told Stott he appeared Star-Times mistaken.

Stott said that by law, Inland Revenue was required to maintain confidence in the tax system, meaning it was acceptable to seek insight into what was behind the public’s opinions. IRD approved the questions proposed by the polling company.

The department conducted regular quarterly surveys, but this thorough analysis was the first of its type.

Last night he said the IRD should not have included the question about political spectrum.

Adams said the survey needed to be examined independently.

‘‘Given the implications of politicisation this raises, it is something the State Services Commissioner Peter Hughes should investigate and confirm that the IRD are not carrying out political services for the Government.’’

‘‘It is something the State Services Commissioner Peter Hughes should investigate.’’ Amy Adams