The Inland Revenue Department has agreed to pay an Auckland couple over half a million dollars compensation for wrongly demanding money from them they did not owe.
Jan and Murray Willis lost their business in a 14-year battle with IRD, which incorrectly demanded $100,000 from them in unpaid ACC levies.
Last year the IRD admitted its mistake and apologised to the couple.
Minister of Revenue Michael Cullen says the $550,000 settlement is a fair deal given the stress the Willises were put under in their battle with the IRD. Cullen says as far as he is concerned the matter is now closed.
IRD Acting Commissioner John Perham apologised to Murray and Janette Willis before Parliament's Finance and Expenditure Select Committee for the IRD incorrectly demanding the $100,000 from them.
Cullen says the settlement does not set a precedent for other disputes between taxpayers and the IRD.
But ACT MP Rodney Hide says the IRD has yet to answer many cases of taxpayer mistreatment.
"I do believe we need law changes because right now the law is jammed hard up against every hard working tax payer."
Cullen says the IRD has been trying to improve its performace. He says not everyone who has an argument with the IRD is necessarily in the right.
Hide says he will be checking to see the IRD punishes the staff responsible for the poor treatment of the couple.
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