• Why compliance is important
• Making compliance easy
• Helping customers to comply
• Detecting non-compliance
• Using the full force of the law

Why compliance is important

Inland Revenue plays a key role in improving the economic and social wellbeing of New Zealanders. We collect taxes to fund government programmes and services, from hospitals, schools and roads to environmental protection and recreation. We also administer social policy programmes, making sure our customers receive the payments that enable them to take part in society.

Making compliance easy

Most individuals and businesses comply voluntarily with their tax and social policy responsibilities. They meet the legal requirements for registration, filing, reporting, claiming and paying.

Our role is to support individuals, businesses and tax agents to manage their obligations, and help them to put it right if they've made a mistake. We do this by providing information, self-assessment tools and online services. We continuously improve our systems to make it easier for customers and tax agents to interact with us.

But there are always people who do not comply, for all sorts of reasons. We take non-compliance seriously and deal firmly but fairly with those who don't meet their obligations, as well as addressing emerging areas of concern.

Our compliance model

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Helping customers to comply

Most individuals and businesses want to comply but some need help to do so. We offer them a range of services and practical support, including:advisory services for individuals, businesses, community groups and intermediaries account-management for large, complex businesses developing policy proposals for new tax laws.

Individuals and businesses who have made a mistake, genuine or otherwise, should contact us. If they let us know before we start investigating, any potential shortfall penalties can be significantly reduced.

Detecting non-compliance

For the small number of individuals and businesses who are reluctant to comply we make sure their activities don't go undetected for long. We use a range of information, including matching data from other agencies against our own, to identify unacceptable behaviour, develop a view of their non-compliance and evaluate the most appropriate response.

We regularly review individuals' and businesses' tax affairs and investigate to confirm they've met their obligations.

We also provide education through the investigation process to encourage future compliance. Our Revenue Alerts and media releases highlight significant issues or emerging tax concerns.

Using the full force of the law

For the few people who choose not to comply, we will act firmly. We use a range of assessment and recovery methods where customers have deliberately filed incorrect returns, under-paid their tax, or claimed false credits or entitlements. We impose late filing and shortfall penalties where appropriate, and in more serious cases, we prosecute those who commit fraud and evade paying tax.

We are continually improving our ability to identify and investigate non-compliant behaviour, including exchanging information with international partners and other government departments.