Bulk external datasets are datasets about individuals, entities or groups of taxpayers, which we get from businesses, organisations or individuals.
The datasets include bulk data that we have requested under section 17B of the Tax Administration Act 1994 (the TAA) and information from open sources such as:
- public registers
- commercially acquired datasets
- the public domain.
Our power to obtain external datasets
Section 17B of the TAA gives Inland Revenue the power to require any person to provide information, such as bulk datasets, that we consider necessary or relevant for administering or enforcing the revenue laws.
Under section 17B of the TAA, the person providing the information does not need to get permission from an individual to give us the information. However, the person may tell the individual about our request if they wish.
What bulk external datasets are used for
Under the TAA, we are required to protect the integrity of the tax system and are responsible for the care and management of taxes. The TAA requires Inland Revenue to collect over time the highest net revenue practicable within the law.
Bulk external datasets may be used to help us meet legislative requirements for the following purposes.
- Making sure our customers are paying the right amount of tax, complying with their tax obligations and taking targeted compliance actions where appropriate.
- Helping our customers receive correct entitlements.
- Identifying opportunities to improve our customer service.
Collecting information is part of the day-to-day activities we carry out in administering the tax system. We get information from many sources. We collect information when we consider it necessary or relevant for the administration or enforcement of the tax Acts. We approach businesses, organisations and individuals from time-to-time to obtain bulk information to meet our needs.
We cannot explain the purpose of bulk external datasets in detail, as we must maintain the confidentiality of sensitive revenue information and the affairs of taxpayers. Our obligations to protect the integrity of the tax system, and the confidentiality of information, are stated in section 6 and section 18 of the TAA.
Bulk external datasets process
Due to the sensitive nature of this information, we have developed a process to govern how we use our power to obtain datasets, and how we use and manage this information. We are bound by the confidentiality of information provisions, and use the data we get only for the purposes of tax administration.
The process also includes consideration of the Privacy Act 2020, including ethical requirements.
The process does not apply to:
- memorandums of understanding or information-sharing agreements between us and other agencies. These agreements are intended for regular information sharing for the purpose of delivering public services
- data-matching programmes between government departments, which are approved by statute and regulated by the Privacy Commissioner.
The process for requesting a dataset
Collecting information under the bulk external datasets process is done in 3 stages. We engage with the business, organisation or individual at all stages of the process to resolve any difficulties they may have in supplying the information.
Stage 1: Business case approval
The process has controls and governance in place to determine if a dataset request is appropriate. We prepare a proposal to make sure that requests for datasets are only made when it is necessary or relevant. The proposal is reviewed to consider legal and organisational requirements under the TAA and Privacy Act, including ethical requirements.
Stage 2: Issue section 17B notice
Once a proposal has been approved, we will issue a section 17B notice to request the information. The section 17B notice will:
- list all the information required
- detail the external stakeholders' statutory non-disclosure rights
- give details on how the information can be delivered and/or collected.
Stage 3: Dataset supply
The information is given to us in the manner set out in the section 17B notice.
If gathering the information is unreasonably time-consuming or causes the external stakeholder who is providing the information difficulty with cost and effort, they should contact the Inland Revenue officer involved for assistance. In cases of genuine difficulty, the section 17B notice may be modified. However, we must agree to this before the expiry date on the original notice.
Obligations of the external stakeholder
If a business, organisation, or individual receives a request from us to supply a dataset, they are legally obliged to provide it under section 17B of the TAA.
Confidentiality and privacy
We recognise the sensitive nature of this type of information. We limit access to data from an external stakeholder to only those of our staff who need it. We have strict access controls in place to prevent unauthorised access to information. Staff are prohibited from accessing, recording, or disclosing any customer's tax information except in the performance of their duties. Internal audit checks are built into the bulk external dataset process to make sure that processes, procedures and system-user monitoring policies are followed.
Assistance
Our Bulk External Dataset team can help with the extraction, encryption and safe transport of data. Businesses, organisations, and individuals needing assistance must arrange this with us before their section 17B notice expires.
Further information
If you have questions about our use of bulk external datasets, or if you have received a dataset request that you need help with, please contact our External Dataset Co-ordinator