Measurement of Inland Revenue tax revenue is on an accrual basis. Figures are unconsolidated, including the tax of government-owned entities. Material changes to accounting policies which have significantly affected the published statistics are:
- Provisional tax estimation is included in company tax and other personal tax revenue in the June 2006 and subsequent years. Before June 2006, provisional tax was not estimated at the time the income was earned but was instead recognised at the due date. The accounting change had the effect of a bring-forward of some tax revenue into 2006.
- Bad debt write-offs have been reported separately as an expense and are no longer netted against tax revenue from the June 2008 year onwards.
Source deductions include pay as you earn (PAYE) income tax paid through employers, and ESCT (employer superannuation contributions tax).
Other persons include income tax paid directly to Inland Revenue by individuals, Māori authorities and trusts, net of refunds such as refunds of PAYE after year end return filing. It does not include tax withheld by other entities via PAYE, resident’s withholding tax (RWT) on interest and dividends, or dividend imputation credits.
Company tax includes income tax paid directly to Inland Revenue by companies, unit trusts, superannuation funds, PIEs, and clubs and societies, net of refunds.
GST administered by the New Zealand Customs service has been included to give more complete information on GST. Customs GST can result in refunds from Inland Revenue.