• Skip to content
  • Skip to navigation
Global site
  • Global site
Grant Thorton Logo

Grant Thornton Logo Grant Thornton logo

  • Meet our people
  • Insights
  • Services
  • Industries
  • Careers
  • Locations
  • Business advisory services
  • Financial advisory services
  • Tax
  • Audit
  • Operational advisory
Business advisory services Home
  • NZTE support for businesses impacted by COVID-19
Financial advisory services Home
  • Asia Services Group
  • Business valuations
  • Capital markets
  • Complex and international services
  • Corporate insolvency
  • Debt advisory
  • Expert witness
  • Financial models
  • Forensic and investigation services
  • Independent business review
  • IT forensics
  • Mergers and acquisitions
  • Raising finance
  • Relationship property services
  • Restructuring and turnaround
  • Transaction advisory
Tax Home
  • Corporate tax
  • Employment tax
  • Global mobility services
  • GST
  • International tax
  • Research and Development
  • Tax compliance
  • Transfer pricing
Audit Home
  • Audit methodology
  • Audit technology
  • Financial reporting advisory
Operational advisory Home
  • Business architecture
  • Internal audit
  • IT advisory
  • IT privacy and security
  • PCI DSS
  • Process improvement
  • Procurement/supply chain
  • Project assurance
  • Risk management
  • Robotic process automation (RPA)
  • Energy and resources
  • Financial services
  • Food and beverage
  • Health and aged care
  • Media and entertainment
  • Not for profit
  • Professional services
  • Public sector
  • Real estate and construction
  1. Grant Thornton New Zealand
  2. Press releases
  3. 2012
  4. Budget 2012: A super collector

Budget 2012: A super collector

22 May 2012
  • Press releases
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

If there is one Government Department which has been widely accepted as performing relatively well, it is the Inland Revenue Department.

This is no mean feat  for an organisation at the forefront of making people pay a large portion of  their earnings to the Government, enforcing Government policy and ensuring  miscreants are brought to account.

However, it has been creaking at the seams for some years as this success bred greater workloads, most of which have been outside of the core role of collection of taxes.

The FIRST computer system went live in the late 1980’s and has been modified, expanded and covered in band aids ever since. It has got to the stage that any Government policy changes are met with trepidation from within the Inland Revenue as it seeks to manage the changes to the various systems and bolt-ons to ensure they are effective.

If there was ever a system in need of a substantial upgrade, it is the FIRST system.

Given the Government’s desire to achieve greater efficiency from its public sector, changes to the delivery of the Inland Revenue are highly probable.

Innovation is what it is seeking. Inland Revenue is a prime candidate for delivering this, provided it can move itself into the 21st Century in terms of how pedantic it is with privacy issues.

While we can appreciate the need for privacy, particularly in light of recent ACC revelations and a need for  confidence in the tax system, it has in recent times gone overboard on ensuring it is only communicating, in the safest way, to duly authorised people. For example, a company has to designate in advance who its shareholders/ directors/ finance team is to enable them to speak on behalf of the company. While most businesses use email as a matter of fact, Inland Revenue require a signed release to enable this to happen.

All that could be about to change. The first inkling was just this month, with the launch of a smartphone application enabling suitably registered individuals to access their personal tax details electronically over the phone. This is a monumental step for a Department steeped in history and conservatism.

If we consider the recent leaps in the advance of technology, coupled with a move to self-assessment (taxpayers assessing their own taxes), then a change of philosophy at the Inland Revenue coupled with innovative and ground breaking thinking interwoven with these technological advances could see the greatest progression in the delivery of tax services in the world. Our tax system and its management were heralded as world leaders during the 80’s and 90’s. And while they are still regarded as being highly efficient, the time is right for another quantum leap.

But that may not be all. The recently announced “super ministry” could herald further changes to Inland Revenue. It has been so efficient with the systems and processes that it is not beyond the realms to suggest the collection arms of Justice and Customs could come within a “Revenue” super ministry. With the potential for changes to ACC, the assessment and collection of ACC levies could also be brought under that umbrella, with case management being dealt with separately by a revised ACC Ministry.

Such changes are not beyond the realms of  possibility, particularly as the Inland Revenue has experience in such collections (child support and student loans for example), and its wide powers would facilitate easier collection of the ballooning debt owed to the crown.

Look out on budget day therefore for significant changes to be identified for the Inland Revenue. A combination of tax revenues, social policy arm and government collections. All facilitated by a massive investment in technology to move the Government towards the 21st Century. 

The unfortunate consequence of such an organisational shift and innovative development is that it will come at a cost of a large number of jobs within the relevant Government Departments. Efficiency and effectiveness has a cost to everyone involved.

There has been much comment that a Government that cannot increase its taxes due to the state of the economy would instead resort to increased audit activity. That may be the case, but through technology and innovation, enhanced Government revenue through more efficient and effective collections, is just as good.

Further enquiries, please contact:

Greg Thompson           
Partner, Tax
T +64 (0)4 495 3775
M+64 (0)21 281 7332
E greg.thompson@nz.gt.com

  • Follow us on Instagram
  • LinkedIn icon
  • Twitter icon
  • Facebook icon
CONNECTclose
  • Contact us
  • Make an enquiry/submit an RFP
  • Meet our people
  • Careers
  • Alumni
  • Locations
ABOUTclose
  • About Grant Thornton
  • Insights
  • Press
LEGALclose
  • Privacy
  • Disclaimer
  • Sitemap

© 2021 Grant Thornton International Ltd (GTIL) - All rights reserved. "Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

    • EN