We continuously monitor future trends and how these might impact on us and our customers and their ability and willingness to comply. The changes we see as most relevant over the period of this Statement of Intent are:
- Societies in flux - We’ll continue to engage with customers in the face of increasing mis- and dis-information. High levels of trust help to ensure policy/legislative changes can be more easily implemented and support voluntary compliance.
- Population growth and demographic transition - As the New Zealand population ages, the tax base will reduce unless it can be replaced or increased in other ways. At the same time, tax revenue will be required to support increased investment in healthcare and to pay for superannuation. We’ll continue to work with The Treasury Te Tai Ōhanga to ensure the ongoing viability of the tax base. We’ll also need to consider how we attract and retain workers and ensure we cater to the needs of a changing population.
- Climate and environmental change - There may come a point where the tax system more comprehensively aims to change behaviour. This may alter our capability needs. We already have a role dealing with adverse events and this support may be required at a different scale in the future.
- Geopolitical volatility and instability – New Zealand relies heavily on a rules-based international order to create and implement multi-lateral agreements to address tax issues that require international co-operation. The number of tax issues requiring international cooperation is increasing. If multi-lateral cooperation diminishes, multi-lateral agreements will take longer and be harder to obtain leaving New Zealand with limited options for addressing non-compliance and emerging tax issues.
- Disruptive use of technology -It could be more challenging to maintain compliance in a world where complex and borderless transactions and reduced use of intermediaries make it more difficult to attribute transactions and income to customers. Increased challenges around cyber-security, privacy and ethics may require global co-operation.
Understanding the implications of these changes will help us to better prepare for and respond to future government priorities and changes in customers’ behaviour.
Last updated:
09 Jan 2025