Output expense 4

Output expense 4
Revenue assessment and collection

Description

This output expense provides services that contribute to the availability of revenue to fund government programmes, as well as ensuring that taxpayers and other customers receive payments they are entitled to, including tax refunds. This is achieved through services designed to achieve timely, efficient and effective assessment and processing of:

• tax payments, rebates and refunds for taxpayers
• entitlements for social support programmes.

Activities undertaken:

• registering taxpayers
• making tax assessments
• banking tax payments and making refunds
• processing applications and payments for social support programmes
• supplying information to other government agencies
• accounting and reporting the collection of Crown revenue.

Financial performance for the year ended 30 June 2006 (GST-exclusive) $000

Revenue $000	Expenses $000	Net surplus/(deficit) $000
61,230	59,654	1,576

 

Output 4.1 Return and payment processing

Description

This output involves processing all tax returns, issuing assessments, rebates, refunds, notices and statements as well as processing and banking payments, and accounting and reporting the collection of Crown revenue.

Performance measures

		Budget	Actual
Quantity
We will ensure that at least 20% of returns are filed electronically.		20%	26.5%
Quality
We will correctly process 100% of notices, statements, certificates of entitlement, and loan transfer letters.		100%	96.2%
We will correctly process 100% of all payments to accounts.		100%	99.8%
Timeliness
We will issue:
	at least 80% of income tax return assessments within 6 weeks	80%	87.1%
	100% within 10 weeks	100%	94.3%43
of receipt.
We will issue:
	at least 95% of FBT and GST return and employer monthly schedule assessments within 3 weeks	95%	92.9%
	100% within 6 weeks	100%	97.4%
of receipt.
We will issue 100% of all non-queried GST refunds within 15 working days of receipt.		100%	96.2%
We will process and issue:
	at least 90% of rebate claim refunds within 3 weeks of receipt	90%	92.0%
	100% within 8 weeks.	100%	99.0%
We will process paid parental leave applications within 5 working days of receipt.		100%	94.2%44
We will bank 100% of payments within 1 working day of receipt.		100%	99.1%
43 Achievement of the standard was impacted by the number of income tax returns received being 8% higher than forecast and staff being redeployed to address high customer demand in other areas of the organisation.
44 This result is a significant improvement on 2004-05. As most parents made their application well in advance of their entitlement they were able to receive their entitlement on time despite not all applications being processed within 5 working days. This measure has been changed for next year to reflect customers receiving their entitlements on time.

 

Activity forecasts

		Budget	Actual
Quantity
We will process an expected:
	7.26 to 8.02 million returns	7.26 to 8.02 million	7.75 million
	7.28 to 8.05 million payments.	7.28 to 8.05 million	7.75 million

 

Output 4.2 Supply of information to other agencies

Description

This output involves the supply of information to other government agencies, in line with the agreements between Inland Revenue and those agencies.

Performance measure

	Actual
Quantity and timeliness
We will ensure that all information provided to other agencies meets agreed standards.	Achieved

 

Output statement: Revenue assessment and collection
for the year ended 30 June 2006

Actual 2005 $000		Actual 2006 $000	Main estimates 2006 $000	Final voted 2006 $000
	Revenue
55,815	Crown	59,402	64,749	59,402
1,611	Other	1,828	1,958	1,958
57,426	Total revenue	61,230	66,707	61,360
	Expenses
57,425	Annual appropriations	59,654	66,707	61,360
0	Other appropriations	0	0	0
57,425	Total expenses	59,654	66,707	61,360
1	Net surplus/(deficit)	1,576	0	0
56,097	Output 4.1 Return and payment processing	58,326	65,171	59,824
1,328	Output 4.2 Supply of information to other agencies	1,328	1,536	1,536
57,425	Output expense cost	59,654	66,707	61,360

 

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