Annual Report 2007: Part two - Key business results
Tax revenue
During 2006-07 we assessed tax revenue of $48.6 billion, $1.3 billion above forecast for the year, and $1.8 billion more than in 2005-06.
During the year, we assessed 89% of core Crown revenue[5] (compared to 85% in 2005-06). Our contribution to core Crown revenue has increased by 6 percentage points over the past five years, largely due to buoyant economic conditions and the consequent growth in tax collected from companies and individuals.
A breakdown of the actual revenue assessed into direct and indirect taxation[6] and tax type is shown below.
| 2004-05 $ billion |
2005-06 $ billion |
2006-07 $ billion | |
|---|---|---|---|
| Direct tax | 32.8 | 37.3 | 38.5 |
| Indirect tax | 9.2 | 9.5 | 10.1 |
| Total | 42.0 | 46.8 | 48.6 |
Figure 3 -
2006-07 tax revenue by tax type
[ Larger version of image | Long description ]
For further information on revenue collected by Inland Revenue, see Part Six of this report, "Financial schedules for administered accounts - Crown". Out-turn data for tax from all sources is available at www.treasury.govt.nz/government/revenue/taxoutturn
To show the composition of tax revenue across other countries' tax administrations, Figure 4 sets out an indicative picture of the percentage of major tax types for the 2004-05 tax year. It shows that the composition of Australia's and New Zealand's tax revenue is similar.
| Ireland | Canada | United Kingdom | Australia | New Zealand | |
|---|---|---|---|---|---|
| Income tax | 26% | 42% | 34% | 49% | 51% |
| Company tax | 11% | 12% | 9% | 19% | 19% |
| GST/VAT | 29% | 4% | 20% | 16% | 21% |
| Other |
34% |
42% |
37% |
16% |
9% |
Unclaimed monies
Generally, money held in an account where there is no activity for six consecutive years becomes unclaimed money[8]. This year, we repaid $623,000 of unclaimed money. In the same period we received $5.3 million from unclaimed money holders for the Crown. Since we introduced a computer-based system in February 1992, we have received a total of $48.6 million of unclaimed monies and paid out $8.0 million.
5 Total revenue levied through the Crown's sovereign power. It comprises taxation, levies, fees, fines and penalties, but excludes investment income, sales of goods and services and other sources of revenue. Other agencies such as the New Zealand Customs Service account for the balance of core Crown revenue.
6 Direct taxation relates to the economic action of the agents that bear it. The most common example is income tax. Indirect taxation does not relate to the economic action of the agent, eg GST.
7 This table is illustrative only. Because each country has a different tax system structure, the data is not strictly comparable, resulting in the wide distribution in the "other" category. Source: OECD Comparative information series (2006), February 2007.
8 Unclaimed money falls into three broad groups - money deposits, life assurance proceeds, and certain types of trade debts (including wages and unpresented cheques). A list of the names of people recently identified as being owed money under the Unclaimed Money Act 1971 is available under unclaimed money.
Date published: 23 Oct 2007
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