Inland Revenue Te Tari Taake has a key role to play in supporting the Government to achieve its priorities. The areas the Government is looking to IR to actively contribute to are:
- Maintaining a stable tax and social policy system that is fair and works for all New Zealanders and that the public can have trust and confidence in.
- Rebuilding the economy so that New Zealand is economically stronger, more productive and higher performing.
- Delivering public services so they are more efficient, effective, and responsive.
Raising revenue as efficiently as possible will support the economy to grow and reduce effort for individuals and businesses. Making it easy for people to understand and comply with their tax and social policy obligations will reduce the chance of them making a mistake. Paying taxes and claiming entitlements should not be a burden on people who are trying to do the right thing.
As well as continuing to support the majority who do the right thing, the Government is also focused on ensuring all New Zealanders pay their share. I expect IR to continue to take a firm line with those who choose not to comply, and to have a strong focus on collecting unpaid taxes and loans, and on the areas where there are known integrity risks, for example the cash economy, organised crime, and overseas-based student loan borrowers. I expect to see performance measures for compliance improve as a result. Every dollar that is not collected is a dollar that cannot be invested in other areas such as health and education.
Many opportunities to build tax and social policy compliance into everyday processes will be in working with third parties, particularly in a more digital economy. IR is focused on putting in place the necessary foundations and safeguards to enable more customers to meet their obligations in the systems they naturally use to run their businesses or live their lives.
Good administration is underpinned by good tax policy. Making policy objectives as clear as possible, engaging early, and supporting the generic tax policy process will provide all those with an interest in New Zealand’s tax and social policy system with a strong degree of certainty. The tax and social policy work programme will focus on simplification, reducing compliance costs for taxpayers, and increasing productivity for New Zealand.
Finally, the Government has made it clear public money should be spent carefully. IR is playing its part by finding ways to deliver more within its existing funding.
I am satisfied that the information IR has provided on its strategic intentions is consistent with the policies and performance expectations of the Government.
Hon Simon Watts
Minister of Revenue
14 November 2024