Archive of Speeches and Presentations
New Zealand Credit & Finance Presentation - Debt Recovery in Inland Revenue
25 October 2007
Address by Robert Russell - Commissioner of Inland Revenue
Coverage
Debt recovery in Inland Revenue
Strategic context
Our Way Forward
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Target and tailor our activities through understanding our customers |
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Optimise organisational efficiency and reduce compliance costs over time |
 |
Create an environment which promotes compliance |
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Continually invest in our people and the tools to deliver our future outcomes |
Our compliance model
New Operating Model
- Functional Organisation
- Business and Capability strategies
- Customer Perspectives
New business groups:
- Customer Insight
- Assistance
- Assurance
- Customer Operations
Key business statistics
- 6.3m Customers
- $48b Revenue
- 28m Customer interaction
- 5,500 Staff
Debt by categories
Debt by tax type
Effectiveness
- 80% resolved in 6 months
- 95% resolved in 2 years
- 4% annual increase in customer base
- Under 4% of customers have overdue tax
Commissioner's flexibility
- Maximise recovery of tax
- Legal Context
- Serious hardship
- Instalment arrangement
- Write offs
Penalties and interest
- Late payment penalties
- Use of money interest
- Shortfall penalties
Proposed penalty changes
- Change in approach
- Penalty Changes
- New voluntary disclosures,
- late payment penalty notification
- PAYE penalty
- GST filing
- Tax agents changes
Our debt focus
Using a range of remedies to:
- Continue focus on
- Data integrity
- Automated actions
- Installment
- Trust money
- Child support
- Deliberate application of resources on high risk customers
- Complex entities and structures
- Established non-compliers
- Insolvency
- Precedential litigation
Voluntary administration
- Inland Revenue as a creditor
- Preferential status for trust monies
- How we will administer the change
- Expectations of Insolvency practitioners
Conclusion
- Operating model enhances our compliance focus
- Debt position and focus
- Proposed penalty changes
- Voluntary administration
Attachment
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PDF | 649kb | 17 pages
Other speeches
- Inland Revenue's challenges and priorities
- Inland Revenue's approach to Insolvency - The Two Way Street
- Our Job = Improve Compliance
- Leadership and Inland Revenue
- Corporate Insolvency - Taxation Risk Management
- Strategic Human Resource Management for the Public Service
- Managing IT in the Public Sector
- Inland Revenue = more than just tax
- Inland Revenue = more than just tax
Corporate Communications
Inland Revenue
For all media enquiries phone: 04 890 1698
For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809
P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand
Date published: 25 Oct 2007
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