Appendix 1 Glossary (2023)

Term	Definition
Advance pricing agreements (APAs)	A co-operative approach to addressing transfer pricing compliance. APAs produce significant time and cost savings and certainty of outcomes for both tax authorities and multinationals in comparison with adversarial audits. APAs encourage upfront taxpayer compliance and early resolution of potential disputes.
Appropriation	A parliamentary authorisation for the Government or an Office of Parliament to incur expenses of capital expenditure. Expenditure can only be incurred under an appropriation or other statutory authority.
Approved information-sharing agreement (AISA)	A tool that allows government agencies to provide efficient and effective public services through collaborating and sharing information without intruding on people's rights or exposing agencies to risk. Approved information-sharing agreements are listed in Schedule 2 of the Privacy Act 2020. See https://privacy.org.nz/privacy-for-agencies/information-sharing/
Automatic Exchange of Information (AEOI)	Refers to the new global Standard for Automatic Exchange of Financial Account Information in Tax Matters, which aims to fight offshore tax evasion. AEOI involves financial institutions collecting details of financial accounts held by non-residents and passing that information to us so that we can then pass it on to the relevant country.
Automatically issued individual income tax assessments	We automatically calculate and issue income tax assessments for individual customers if we have all their income information (income from employment investments such as bank deposits or savings interest, or a benefit under an employment share scheme) for the tax year.
Bright-line rule	If a property owner sells a residential property they have owned for less than 10 year, they may have to pay income tax on any gain on its sale, unless the property was their main home or another exemption applies, including rollover relief. The bright-line property rule does not apply to properties acquired before 1 October 2015.
Cabinet	The group of Government Ministers who make the Government's significant decisions. Cabinet is chaired by the Prime Minister.
Child support pass-on	From July 2023, when a liable parent makes a child support payment, it will be passed on to receiving carers on a sole parent benefit, instead of being used to pay the cost of providing the benefit.
Compliance intervention	A step or action taken to assist with compliance. This could range from a simple customer contact through to an audit, statutory dispute or prosecution.
Cost of Living Payment	As part of Budget 2022, the Government introduced the Cost of Living Payment to help eligible people with their day-to-day living costs.
COVID-19 support products	Payments introduced to support businesses and organisations that had a loss of revenue to COVID-19. The Small Business Cashflow Scheme is a loan. The Resurgence Support Payment and COVID-19 Support Payment were grants.
Crown	All Ministers and all departments, the State as a whole.
Customer-centric	Putting our customer at the centre of everything we do. This gives us a better approach to designing new and existing services and guides us on where to focus effort and resources and ways to reach customers in an appropriate manner.
Estimates of Appropriations	Detailed documents in which the Government sets out its spending plans for the coming financial year. The Estimates are presented to Parliament, which then approves them through an Appropriation Bill. (Full name: Estimates of Annual Appropriations for the Government of New Zealand.)
Gateway Services	Te Tari Taake Inland Revenue's Gateway Services are machine-to-machine APIs, web services and file transfers that support communication of tax and social policy information between Te Tari Taake Inland Revenue, tax software, KiwiSaver schemes and other government departments as required. These highly secure services help ensure large-scale information transfer both automatically and on demand as need requires. Each software provider has, at their discretion, chosen which of the gateway services they will integrate with and offer to their customers. Tax intermediaries can use these gateway service offerings to file their clients' tax returns or use myIR.
High-wealth Individuals	Individuals or family groups with: control of more than $50 million in wealth or control of more than $20 million in wealth where they control significant enterprises with turnover greater than $300 million or substantial wealth in property development or complex business structures where minimal tax is paid relative to wealth.
Integrity of the tax system	At all times, we need to make sure we are protecting the integrity of the tax system, which section 6(2) of the Tax Administration Act 1994 defines as follows: (2) Without limiting its meaning, the integrity of the tax system includes - Taxpayer perceptions of the integrity; and The rights of taxpayers to have their liability determined fairly, impartially, and according to law; and The rights of taxpayers to have their individual affairs kept confidential and treated with no greater or lesser favour than the tax affairs of other taxpayers; and The responsibilities of taxpayers to comply with the law; and The responsibilities of those administering the law to maintain the confidentiality of the affairs of taxpayers; and The responsibilities of those administering the law to do so fairly, impartially, and according to law.
Intelligence-led	Means our people can access the right information at the right time, use and share it efficiently and work in collaborative and flexible ways.
Investor Confidence Rating (ICR)	A Treasury-led assessment of government agencies' investment and asset management. The Investor Confidence Rating shows the level of confidence that investors (such as Cabinet and Ministers) can have in an agency's ability to deliver an investment result. It also shows where investment management capability and performance can be lifted. The Investor Confidence Rating uses a rating scale from A to E. See: Investor Confidence Rating (ICR)
Kaitakawaenga Māori	Our Kaitakawaenga Māori deliver Te Tari Taake Inland Revenue services in a whānau, hapū and iwi centric ways to ensure our Māori customers have the tools to self-manage their tax affairs whether they are an individual, or in business.
Māhutonga	Our strategic approach to how we engage with te Tiriti o Waitangi and how we work with Māori.
Mana	Prestige, authority, control, power, influence, status.
Mauri	Life principle, life force, vital essence, special nature, a material symbol of a life principle, source of emotions–the essential quality and vitality of a being or entity.
Motu	Country.
Multi-category appropriation (MCA)	A single appropriation made up of multiple categories (which can be different types of expenditure, including output expenses, other expenses) that all contribute to the same overarching purpose. Multi-category appropriations allow greater flexibility.
myIR	Our online customer service portal that enables customers to access and review their tax information online.
Organisation for Economic Co-operation and Development (OECD)	Provides a forum in which the governments of 35 members countries can work together to share experiences and seek solutions to common problems. Promotes policies that will improve the economic and social wellbeing of people around the world. See: https://www.oecd.org/
Order in Council	A type of secondary legislation that is made by the Executive Council presided over by the Governor-General.
Prescribed Investor Rate (PIR)	The tax rate that a multi-rate PIE (MRP) uses to work out tax on income from an investment. PIRs are only provided when investing in an MRP.
Public Finance Act	The purpose of the Public Finance Act is to consolidate and amend the law governing the use of public financial resources. Refer to: https://www.legislation.govt.nz/act/public/1989/0044/latest/DLM160817.html
Public rulings	Te Tari Taake Inland Revenue's interpretation of how a tax law applies to a particular arrangement and provides certainty on tax positions to the applicant. If a binding ruling applies to a taxpayer and they follow it, we are bound by it and must apply the tax consequences per the ruling.
Rainbow Tick	A certification mark for organisations that complete a diversity and inclusion assessment process. The certification process tests whether a workplace understands and welcomes sexual and gender diversity. The process involves an ongoing quality improvement process.
Resident Withholding Tax (RWT)	A tax on dividends or interest that is paid to New Zealand residents. The payer deducts RWT from this income.
Small Business Cashflow Scheme	A loan available to eligible organisations and small to medium-sized businesses, including sole traders and the self-employed, if they have been adversely affected by COVID-19.
START	An acronym for Simplified Tax and Revenue Technology–our taxation and revenue system.
Taonga	Treasure, anything prized–applied to anything considered to be of value including socially or culturally valuable objects, resources, phenomenon, Māori language, ideas and techniques.
Tax and Social Policy Work Programme	A published document that sets out our policy focus for a relevant period. The work programme follows the strategic direction set out in the Government's revenue strategy.
Tax position differences	The differences between the tax position filed by a customer and the position determined by our investigations. We often refer to these as 'discrepancies'.
Taxpayer rulings	A decision provided by the Commissioner setting out how taxation laws apply to a specific set of facts, arrangement or product. Taxpayer rulings provide certainty about the application of taxation laws, we are bound by it and must apply the tax consequences as per the ruling.
Te ao Māori	Māori world view.
Te Arawhiti	The Crown agency dedicated to fostering strong, ongoing and effective relationships with Māori across government.
Te Reo Māori	Māori language.
Te Tiriti o Waitangi	The Treaty of Waitangi.
Whenua	Country, land, nation, state.