Saturday, October 19, 2013

What would happen if no-one paid their taxes?

Could we live without hospitals, dentists, police, the army, and navy? How could we keep poor people alive? We'd live in a country where things would be harder than it is now. Can we stop it? Is there a way to stop this from happening?

There is a way, it's called tax. The Pt England Ambassadors have been learning about tax. It's because next week we're speaking to the IRD.

The IRD stands for Inland Revenue Department. Their job is to take money and give it to the Government to spend. In 2009 & 2010, the government spent about 64.5 billion dollars! That's a lot of money!

Here are some things that they spent it on.

  • Law and Order: Judges, and policemen,
  • Defence: Army, Navy, Royal Flight,
  • Social security and welfare: For people who don’t have jobs,
  • Health: Hospitals, doctors, nurses, machinery, dentists,
  • Transport and communication: Air Time companies, trains, buses,
  • Heritage, culture and education: Museums, schools, America’s cup boats.

We also interviewed a member of staff about taxes. So I interviewed Mrs Sorenson. Here is the video that Jordan and I made.

What would life be without tax?
Life without tax would change New Zealand a lot. People would live on the road, because there wouldn't be any money given to them. There wouldn't be policemen or judges, which means more crime. Many people would die of sickness, as there wouldn't be enough money to keep hospitals going. There would be less houses because Housing New Zealand would have closed down. 
Could you imagine life without all of that?

You might be wondering where the money comes from.
One of the ways it comes from is from income tax payers. Income tax is money that people pay to the government. The people that pay it are people with jobs. The money goes to the IRD, the IRD gives the money to the government, and the government spends it.

Some of it comes to the government because of GST. GST(Goods and Services Tax) is the money that goes to the government after you buy something. For example, if you buy a chocolate bar, it might cost say $3.00. But the government gets 15% of that.

File:New Zealand Revenue 2005-06.png

Here is a graph about where the money came from in 2005 & 2006. As you can see, most of the money came from individual tax payers.


  1. Iisa, I really enjoyed reading your post about the IRD. I hope you learn lots more next week and please let me know all about your visit to Wellington. Miss Wood

  2. Hi Iisa, what a great blog - you have captured lots of good information about what taxes are and why paying them is so important. And I love your animation - especially the 'get the money' one! I hope you enjoyed the trip to Wellington last week. Thank you for coming to see us. Naomi Ferguson (IRD)

  3. Hi I really like how you drew pictures and put them on your blog. Also do you use a program for that?
    By Melanie Rm 17 Whangarei Intermediate School