Inland Revenue or Inland Revenue Department (IRD; mi, Te Tari Taake) is the
public service department of New Zealand charged with advising the government on
tax policy
Tax policy includes the guidelines developed by a government regarding how taxes are imposed, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspect concerns the overall quantity of taxes t ...
, collecting and disbursing payments for social support programmes, and collecting
tax
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
.
Inland Revenue's
Māori
Māori or Maori can refer to:
Relating to the Māori people
* Māori people of New Zealand, or members of that group
* Māori language, the language of the Māori people of New Zealand
* Māori culture
* Cook Islanders, the Māori people of the Co ...
name is an older spelling of ''Te Tari Tāke'', meaning 'The Department
fTax'. Despite long vowels in Māori now being expressed with
macrons over the vowel rather than double vowels, the department continues to use the double vowel due to the resemblance of the word ''tāke'' to the English word ''take''.
History
Inland Revenue started out as the Land Tax Department in 1878. The department was renamed the Land and Income Tax Department in 1892 with the central office set up in
Wellington
Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by m ...
.
Only in 1952, when the organisation joined with the Stamp Duties Department, was the organisation known as the Inland Revenue Department.
In 1995, a Rewrite Advisory Panel was established to consider and advise on issues arising during the rewriting of the income tax legislation, as part of New Zealand tax reform arising from the
Working Party on the Reorganisation of the Income Tax Act 1976. The panel was disestablished in 2014 at the completion of the tax reform.
Service delivery
In 2019–20, Inland Revenue collected $78.2 billion in tax revenue,
which was more than 80% of the money the government used to pay for services that all New Zealanders benefited from, including social security and welfare, health and education. Other services included law and order, housing and community development, environmental protection, defence, transport, and heritage, culture and recreation.
Inland Revenue is undergoing business transformation activities to make tax and social benefits simpler to receive and pay. As at 2019, these changes have saved $60 million in administrative costs, added $90 million in additional revenue through improved compliance and reduced effort for small to medium-sized businesses.
In 2020, Inland Revenue delivered a change to the revenue system for individuals where every taxpayer account for income tax, Working for Families, KiwiSaver, student loans and the end-to-end processing of PAYE moved into Inland Revenue’s new tax and revenue technology system.
The department administers the following social support programmes:
*
Working for Families
In 2004, the New Zealand Labour government introduced the Working for Families package as part of the 2004 budget. The package, which effectively commenced operating on 1 April 2005, had three primary aims: to make work pay; to ensure income adeq ...
(tax credits)
*
Paid Parental Leave (payment)
*
Child Support
Child support (or child maintenance) is an ongoing, periodic payment made by a parent for the financial benefit of a child (or parent, caregiver, guardian) following the end of a marriage or other similar relationship. Child maintenance is paid d ...
(collection and payment)
*
Student Loan debt (collection)
*
KiwiSaver
The KiwiSaver scheme, a New Zealand savings scheme, came into operation from Monday, 2 July 2007. Participants can normally access their KiwiSaver funds only after the age of 65, but can withdraw them in certain limited circumstances, for examp ...
Acts and regulations administered
Legislation administered by Inland Revenue includes:
* Cheque Duty Repeal Act 2014
* Child Support Act 1991
* Estate and Gift Duties Act 1968
* Gaming Duties Act 1971
*
Goods and Services Tax Act 1985
The Goods and Services Tax Act is an Act of Parliament passed in New Zealand in 1985.
The Act established a consumption tax in New Zealand, originally set at 10%, but subsequently raised to 15%. GST is a tax of 15% on all goods, services and ...
* Income Tax Act 2007
* Stamp and Cheque Duties Act 1971
* Student Loan Scheme Act 2011
* Tax Administration Act 1994
* Taxation Review Authorities Act 1994
* Unclaimed Money Act 1971
*
KiwiSaver
The KiwiSaver scheme, a New Zealand savings scheme, came into operation from Monday, 2 July 2007. Participants can normally access their KiwiSaver funds only after the age of 65, but can withdraw them in certain limited circumstances, for examp ...
Act 2006
Criticisms
Inland Revenue has been criticised for what are seen as heavy handed tactics when forcing payment from debtors, specifically those owing tax arrears and child support payments, and for charging excessive penalties on debts which result in debtors falling into a cycle whereby they are unable to pay the growing amounts they owe. The approach of Inland Revenue has been implicated in a number of suicides and other acts of self-harm.
The number of people threatening self-harm in phone calls to Inland Revenue has trended down consistently over the last three years. Between January and August 2019, 168 people contacted Inland Revenue threatening self-harm. That compares to 292 for the 2018 calendar year; 306 for 2017; and 334 for 2016.
Awards
* In November 2019, an Inland Revenue employee was awarded the State Services Commissioner’s Commendation for Frontline Excellence for her investigation into the suspected multimillion-dollar income suppression by a chain of restaurants. This investigation led to one of the most significant prosecution cases undertaken by Inland Revenue in the past decade.
* In 2019 Inland Revenue was awarded a Distinguished Service Award from Multicultural New Zealand in recognition of its support of community members in the aftermath of the Christchurch attacks.
* Inland Revenue, along with The Treasury, were finalists at the Spirit of Service Awards 2019 for their partnership work to enhance tax policy through kaitiakitanga (stewardship), manaakitanga (care), ōhanga (prosperity) and whanaungatanga (relationships).
* In 2019, an Inland Revenue employee was awarded the Ria McBride Public Service Management Award, sponsored by Te Kawa Mataaho Public Service Commission, which supports women to study as part of their development towards senior management positions in the Public Service.
* In 2018, the IPANZ Prime Minister's Award for Public Sector Excellence and Achieving Collective Impact was awarded to the Ministry of Education, Tertiary Education Commission, Ministry of Social Development and Inland Revenue for delivering fees-free tertiary education for the 2018 school year. The Regulatory Systems award went to the Ministry of Justice, Department of Internal Affairs, Reserve Bank of New Zealand, Financial Markets Authority, New Zealand Customs, and Inland Revenue for Anti-Money Laundering and Countering Financing Terrorism.
* At the 2018 New Zealand CIO Awards, Inland Revenue were finalists in the Business Transformation through Digital and ICT category.
List of Ministers
The Minister of Revenue is the political office of Minister for the department of Inland Revenue. Since November 2020, the position has been held by
David Parker.
;Key
See also
*
Taxation in New Zealand
*
KiwiSaver
The KiwiSaver scheme, a New Zealand savings scheme, came into operation from Monday, 2 July 2007. Participants can normally access their KiwiSaver funds only after the age of 65, but can withdraw them in certain limited circumstances, for examp ...
*
Working for Families
In 2004, the New Zealand Labour government introduced the Working for Families package as part of the 2004 budget. The package, which effectively commenced operating on 1 April 2005, had three primary aims: to make work pay; to ensure income adeq ...
References
External links
Official IRD website
Tax Policy Inland Revenue
{{authority control
Revenue services
New Zealand Public Service departments
Taxation in New Zealand
Government agencies of New Zealand