Output expense 6
Output expense 6 -
Taxpayer audit
Description
This output expense provides services to ensure that the revenue base for funding government programmes is protected. This is achieved by verifying that taxpayers are meeting their obligations through audit activity across all taxpayer groups, specifically targeting risk areas, and taking appropriate enforcement action when obligations are not being met.
Activities undertaken:
- identifying risks to revenue and designing audit activities accordingly
- verifying that tax obligations have been met by auditing a selection of taxpayers
- managing tax litigation.
|
Revenue
|
Expenses
|
Net surplus/(deficit)
|
|---|---|---|
|
120,965
|
118,737
|
2,228
|
For all taxpayer audit outputs
| Budget | Actual | |
|---|---|---|
| Quality | ||
| We will ensure that at least 85% of all cases completed meet our quality standards. |
85%
|
95.9%
|
Output 6.1 Individual and small to medium enterprise audit
Description
This output involves the audit of businesses with a turnover of up to $100 million (excluding groups in the Corporates segment). It includes audits of duties, non-residents, investments and salary and wage-earners.
| Budget | Actual | |
|---|---|---|
| Quality | ||
| We will assess at least $535 per hour for all audit activity, including aggressive tax issues and tax evasion. |
$535
|
$737
|
| Timeliness | ||
| On average we will complete: | ||
| - general audits within 6 months |
6 months
|
3.5 months
|
| - all risk audits within 12 months |
12 months
|
11.2 months
|
| - disputed cases (excluding aggressive tax issues) within 18 months. |
18 months
|
13.3 months
|
| We will ensure that at least 90% of open cases (excluding aggressive tax issues) are less than 24 months old. |
90%
|
92.9%
|
| Budget | Actual | |
|---|---|---|
| Quantity | ||
| We will complete between 793,000 and 877,000 hours conducting all audit activities. |
793,000-877,000
|
850,086
|
Output 6.2 Corporate audit
Description
This output involves auditing and providing services to large businesses with a group turnover of more than $100 million, plus other specific groups.
| Budget | Actual | |
|---|---|---|
| Timeliness | ||
| On average, we will complete investigations within 17 months. |
17 months
|
11 months
|
| We will ensure that at least 85% of all open cases (excluding disputed open cases) are less than 24 months old. |
85%
|
83%
|
|
Budget
|
Actual | |
|---|---|---|
| Quantity | ||
| We will complete between 185,000 and 210,000 hours conducting all audit activities. |
185,000-210,000
|
195,296
|
Output 6.3 Litigation management
Description
This output involves the management of litigation of disputed tax cases, including the requirement to state the case through to resolution by the courts.
|
Budget
|
Actual
|
|
|---|---|---|
| Quality | ||
| No judgments in the courts will contain adverse judicial comments on the department's conduct of the litigation. |
Not achieved 46
|
|
| Timeliness | ||
| We will ensure that all timetable requirements imposed by the courts on the department's solicitors in tax cases are met. |
Not achieved 47
|
46 One of the 26 judgments in the courts this year contained adverse judicial comment. In this judgment both the counsel for the taxpayer and Inland Revenue were criticised in the High Court on preliminary procedural matters. The criticism did not affect the outcome of the case, where Inland Revenue was successful.
47 Timetable requirements were not met in two of the 690 cases on hand this year. There were no adverse consequences for this occurring.
| Budget | Actual | |
|---|---|---|
| Quantity | ||
| We will finally resolve 75 to 100 litigation cases. |
75-100
|
108
|
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