Financial schedules - Crown as administered by Inland Revenue

Schedule of revenue - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Direct taxation
	Income tax
	*Individuals*
19,408,725	Source deductions	20,770,875	19,851,000	20,684,000
4,939,518	Other persons	4,440,162	4,393,000	4,474,000
(952,933)	Other person refunds	(1,080,494)	(962,000)	(1,085,000)
450,564	Fringe benefit tax	467,712	425,000	455,000
23,845,874	Sub-total individuals	24,598,255	23,707,000	24,528,000
	*Company tax*
9,270,322	Gross company tax - other	9,498,503	7,961,000	8,147,000
399,420	Gross company tax - State-owned enterprises	240,154	440,000	426,000
61,688	Gross company tax - Crown entities	1,000	66,000	68,000
362,312	Gross company tax - NZS Fund	178,598	317,000	387,000
(269,967)	Company tax refunds	(295,885)	(205,000)	(252,000)
9,823,775	Sub-total companies	9,622,370	8,579,000	8,776,000
	*Withholding tax*
1,879,126	Resident withholding tax on interest income	2,226,929	2,079,000	2,156,000
73,529	Resident withholding tax on dividend income	88,776	56,000	89,000
160,183	Foreign-source dividend withholding payments	149,191	220,000	146,000
1,095,833	Non-resident withholding tax on income	1,189,138	874,000	1,142,000
711,019	Specified superannuation contribution withholding tax	601,857	683,000	635,000
3,919,690	Sub-total withholding tax	4,255,891	3,912,000	4,168,000
37,589,339	Total income tax	38,476,516	36,198,000	37,472,000
	Other direct taxation
2,960	Estate and gift duties	2,008	2,000	4,000
2,960	Sub-total other direct taxation	2,008	2,000	4,000
37,592,299	Total direct taxation	38,478,524	36,200,000	37,476,000

2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Indirect taxation
	Goods and services tax
16,844,451	Gross goods and services tax - Inland Revenue	18,039,635	16,827,000	17,731,000
(7,663,864)	Goods and services tax refunds	(8,325,179)	(8,028,000)	(8,332,000)
9,180,587	Sub-total goods and services tax	9,714,456	8,799,000	9,399,000
	Other indirect taxation
7,678	Stamp and cheque duties	6,953	8,000	8,000
74,827	Approved issuer levy	85,158	66,000	78,000
300,717	Gaming duties	271,224	293,000	269,000
14,278	Other indirect taxation	14,982	-	-
397,500	Sub-total other indirect taxation	378,317	367,000	355,000
9,578,087	Total indirect taxation	10,092,773	9,166,000	9,754,000
	Other revenue
276,013	Compulsory fees, fines, penalties and levies - child support	241,988	307,000	240,000
314,791	Student loans	405,526	270,911	464,521
590,804	Total other revenue	647,514	577,911	704,521
47,761,190	Total operating revenue	49,218,811	45,943,911	47,934,521

The accompanying accounting policies and notes form part of these financial schedules.

For full understanding of the Crown's financial position and the results of its operations for the period, reference should be made to the consolidated audited Crown financial statements for the year ended 30 June 2007.

Schedule of expenditure - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Benefits and other unrequited expenses
1,182,125	Family support tax credit	1,689,451	1,717,000	1,769,000
4,944	Family tax credit	9,799	8,000	10,000
153,998	Child tax credit	44,444	52,000	44,000
15,895	Parental tax credit	20,654	17,000	21,000
70,003	In-work payment	461,106	409,000	461,000
96,354	Paid parental leave	121,500	132,900	120,700
-	Payroll subsidy	-	4,900	1,000
1,523,319	Total benefits and other unrequited expenses	2,346,954	2,340,800	2,426,700
	Borrowing expenses
3,551	Income equalisation reserve interest	3,426	2,000	3,750
(1)	Adverse event income equalisation interest	1	3	1
-	Environmental restoration interest	-	90	-
3,550	Total borrowing expenses	3,427	2,093	3,751
	Bad debts and changes in debt provision
(12,229)	General tax provision	1,640,678	101,188	1,048,903
436,068	Bad debts	811,055	-	-
88,549	Child support provision	67,070	89,239	58,551
512,388	Change in debt provision	2,518,803	190,427	1,107,454
	Student loan fair value write down and impairment
12,823	Loan provision	-	15,420	10,770
1,249,551	Initial fair value write-down and subsequent impairment	151,052	-	326,475
1,262,374	Change in fair value write down	151,052	15,420	337,245
1,774,762	Total change in debt provision and fair value write-down	2,669,855	205,847	1,444,699
3,301,631	Total expenditure	5,020,236	2,548,740	3,875,150

The accompanying accounting policies and notes form part of these financial schedules.

Schedule of assets - Crown as administered by Inland Revenue

as at 30 June 2007
2005/06 Actual $000		Notes	2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Assets
	Current assets
1,650,967	Cash and bank balances		1,811,302	2,050,064	1,650,967
1,650,967	Total cash and bank balances		1,811,302	2,050,064	1,650,967
	Receivables and advances - current
369,354	Student loans	1	547,512	501,721	358,615
8,824,716	Tax receivable - general		8,629,057	6,075,241	8,697,716
644,898	Receivables child support		711,762	745,957	702,898
102,706	GST debtors - intra-Crown*		85,965	133,812	102,706
9,941,674	Total receivables and advances - current		9,974,296	7,456,731	9,861,935
	Provision for doubtful debts
(899,385)	Provisions for doubtful debts - general tax		(2,540,063)	(1,105,694)	(1,948,288)
(616,934)	Provisions for doubtful debts - child support		(684,004)	(708,659)	(675,485)
(1,516,319)	Total provision for doubtful debts		(3,224,067)	(1,814,353)	(2,623,773)
8,425,355	Total current receivables and advances		6,750,229	5,642,378	7,238,162
10,076,322	Total current assets		8,561,531	7,692,442	8,889,129
	Non-current assets
	Receivables and advances - non current
4,608,723	Student loans	1	4,881,734	4,853,860	4,889,327
4,608,723	Total non-current assets		4,881,734	4,853,860	4,889,327
14,685,045	Total assets		13,443,265	12,546,302	13,778,456

* This balance is eliminated upon consolidation of the Crown Accounts.

The accompanying accounting policies and notes form part of these financial schedules.

Schedule of liabilities - Crown as administered by Inland Revenue

as at 30 June 2007
2005/06 Actual $000		Notes	2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Liabilities
	Current liabilities
	Payables and provisions
18,142	Child support		22,159	8,658	18,142
3,479,291	Taxes refundable		3,157,329	2,656,389	3,479,291
3,497,433	Total payables and provisions		3,179,488	2,665,047	3,497,433
	Income equalisation, adverse event and environmental restoration scheme
143,036	Reserve account	2	109,875	102,053	108,536
143,036	Total value of the reserve accounts		109,875	102,053	108,536
3,640,469	Total liabilities		3,289,363	2,767,100	3,605,969

The accompanying accounting policies and notes form part of these financial schedules.

Schedule of movements between departments - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
44,459,559	Net result from operating activities	44,198,575	43,395,171	44,059,371
5,583,928	Opening balance	11,044,576	9,388,474	11,044,576
	Asset transfer between departments -
5,196,232	Ministry of Social Development	683,153	748,713	634,758
-	Others	7,944	-	-
(44,195,143)	New Zealand Debt Management Office	(45,780,346)	(43,753,156)	(45,566,218)
11,044,576	Closing balance	10,153,902	9,779,202	10,172,487

The accompanying accounting policies and notes form part of these financial schedules.

Schedule of cash flows - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Cash flows - operating activities
	Direct taxation
	*Individuals*
19,186,916	Source deductions	20,749,273	19,851,000	20,700,000
4,882,898	Other persons	5,120,756	5,189,000	5,296,000
(1,503,299)	Other person refunds	(1,850,142)	(1,780,000)	(1,858,000)
449,744	Fringe benefit tax	481,849	421,000	469,000
23,016,259	Sub-total individuals	24,501,736	23,681,000	24,607,000
	*Company tax*
8,447,646	Gross company tax - other	9,736,384	8,521,000	9,009,000
398,686	Gross company tax - State-owned enterprises	220,235	415,000	367,000
64,244	Gross company tax - Crown entities	1,000	72,000	71,000
366,230	Gross company tax - NZS Fund	200,548	317,000	424,000
(832,575)	Company tax refunds	(1,152,568)	(746,000)	(1,091,000)
8,444,231	Sub-total companies	9,005,599	8,579,000	8,780,000
	*Withholding tax*
1,862,085	Resident withholding tax on interest income	2,192,108	2,078,000	2,154,000
74,254	Resident withholding tax on dividend income	90,293	56,000	91,000
157,268	Foreign-source dividend withholding payments	140,605	220,000	148,000
1,093,140	Non-resident withholding tax on income	1,134,530	874,000	1,092,000
709,808	Specified superannuation contribution withholding tax	607,622	683,000	617,000
3,896,555	Sub-total withholding tax	4,165,158	3,911,000	4,102,000
35,357,045	Total income tax	37,672,493	36,171,000	37,489,000
	Other direct taxation
1,864	Estate and gift duties	3,455	2,000	4,000
1,864	Sub-total other direct taxation	3,455	2,000	4,000
35,358,909	Total direct taxation	37,675,948	36,173,000	37,493,000

	Indirect taxation
	Goods and services tax
16,246,717	Gross goods and services tax - Inland Revenue	17,225,409	16,470,000	17,058,000
(7,215,003)	Goods and services tax refunds	(7,625,078)	(7,669,000)	(7,604,000)
9,031,714	Sub-total goods and services tax	9,600,331	8,801,000	9,454,000
	Other indirect taxation
7,679	Stamp and cheque duties	6,038	8,000	6,000
72,638	Approved issuer levy	82,132	66,000	80,000
284,721	Gaming duties	277,088	293,000	274,000
24,716	Other indirect taxation	9,580	1,000	-
389,754	Sub-total other indirect taxation	374,838	368,000	360,000
9,421,468	Total indirect taxation	9,975,169	9,169,000	9,814,000
44,780,377	Total taxation receipts	47,651,117	45,342,000	47,307,000
	Other receipts
194,870	Compulsory fees, fines, penalties and levies - child support	178,272	220,000	182,000
179,854	Investment income - student loans	37,500	41,962	38,607
(106)	Other - accident compensation collections	120	-	-
374,618	Total other receipts	215,892	261,962	220,607
45,154,995	Total cash flow provided from operating activities	47,867,009	45,603,962	47,527,607
	Cash was disbursed to
-	Finance cost	-	2,093	3,751
1,638,065	Family assistance	2,346,254	2,340,800	2,376,700
1,638,065	Total cash disbursed to operations	2,346,254	2,342,893	2,380,451
43,516,930	Net cash inflows from operating activities	45,520,755	43,261,069	45,147,156

	Cash flows - investing activities
	Cash was provided from
306,519	Repayment of advances - student loans capital	448,958	517,537	453,562
306,519	Net cash inflows from investing activities	448,958	517,537	453,562
	Cash flows - financing activities
	Cash was provided from
53,207	Income equalisation scheme	6,020	89,900	57,660
53,207	Total cash flow provided from financing activities	6,020	89,900	57,660
	Cash was disbursed to
80,610	Repayment of income equalisation	35,052	115,350	92,160
80,610	Total cash disbursed to financing	35,052	115,350	92,160
(27,403)	Net cash outflows from financing activities	(29,032)	(25,450)	(34,500)
43,796,046	Net increase in cash	45,940,681	43,753,156	45,566,218
2,050,064	Opening cash balance	1,650,967	2,050,064	1,650,967
1,734,711	Cash received from New Zealand Debt Management Office	2,530,893	13,720,343	14,156,611
(45,929,854)	Cash paid to New Zealand Debt Management Office	(48,311,239)	(57,473,499)	(59,722,829)
1,650,967	Closing balance	1,811,302	2,050,064	1,650,967

The accompanying accounting policies and notes form part of these financial statements.

Schedule of net result to operating cash flows - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
44,459,559	Net result from Crown operations	44,198,575	43,395,171	44,059,371
	Movement in working capital
32,587	(Increase)/decrease student loan short-term	7,821	(77,492)	16,063
182,305	Increase/(decrease) provision doubtful debts	1,521,769	209,490	1,102,130
(2,926,475)	(Increase)/decrease tax receivable - general taxation	195,659	(24,000)	127,000
31,106	(Increase)/decrease goods and services tax debtors	16,741	-	-
(86,941)	(Increase)/decrease receivables - child support	(66,864)	(87,000)	(58,000)
645,601	Increase/(decrease) payables - student loan	683,153	748,713	634,758
9,484	Increase/(decrease) payables - others	4,017	-	-
822,902	Increase/(decrease) tax refundable	(321,962)	-	-
(1,289,431)	Total working capital movements	2,040,334	769,711	1,821,951
	Other non-cash items
(302,979)	Other non-cash items - student loans capital	(453,087)	(517,537)	(453,562)
649,781	Student loans long-term	(265,067)	(386,276)	(280,604)
346,802	Total other non-cash items	(718,154)	(903,813)	(734,166)
43,516,930	Net cash inflows from operating activities	45,520,755	43,261,069	45,147,156

The accompanying accounting polices and notes form part of these financial schedules.

Statement of unappropriated expenditure

	2006/07 Supp Estimates $000	2006/07 Actual $000	2006/07 Remeasurement adjustment $000	2006/07 Actual adjusted $000	Amount in excess of appropriation $000
Other expenses to be incurred by the Crown
Child support doubtful debt provision	58,171	67,070	(2,564)	64,506	6,335
Debt write-off	-	811,055	-	811,055	811,055
General tax doubtful debt provision	22,230	1,640,678	(1,104,672)	536,006	513,776

Child support doubtful debt provision - this amount in excess of appropriation is due to a higher than forecast increase in gross receivables for Child Support Penalties ($711.762 million at 30 June 2007 compared to $644.898 million at 30 June 2006) which has had a corresponding impact on the doubtful debt provision.

Debt write-off - this amount relates to bad debt write-offs that had previously been offset against revenue.

General tax doubtful debt provision - this amount in excess of appropriation is due to a change in the forecast level and mix (i.e. tax type) of overdue debtors.

Statement of appropriations - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
	Vote: Revenue
	Benefits and other unrequited expenses
150,927	Child support payments	182,876	188,000	171,000
1,280,349	Family support tax credit	1,689,451	1,717,000	1,769,000
4,944	Family tax credit	44,444	8,000	10,000
153,998	Child tax credit	9,799	52,000	44,000
15,895	Parental tax credit	20,654	17,000	21,000
70,003	In-work payment	461,106	409,000	461,000
96,354	Paid parental leave	121,500	132,900	120,700
-	Payroll subsidy	-	4,900	1,000
-	Retirement commissioner	-	-	380
1,772,470	Total benefits and other unrequited expenses	2,529,830	2,528,800	2,598,080
	Borrowing expenses
3,551	Income equalisation interest	3,426	2,000	3,750
(1)	Adverse event interest	1	3	1
-	Environmental restoration interest	-	90	-
3,550	Total borrowing expenses	3,427	2,093	3,751
	Other expenses to be incurred by the Crown
(12,229)	General tax doubtful debt provision	536,006	101,188	22,230
-	Debt write-off	811,055	-	-
88,549	Child support doubtful debt provision	64,506	89,239	58,171
12,823	Student loan fair value recognition	-	15,420	10,770
1,414,708	Student loan interest write-offs and student loan doubtful debt provison	151,052	-	326,475
1,503,851	Total other expenses	1,562,619	205,847	417,646
3,279,871	Total appropriations	4,095,876	2,736,740	3,019,477

The accompanying accounting policies and notes form part of these financial schedules.

Student loan fair value write-down million represents both Inland Revenue and Ministry of Social Development appropriations.

Schedule of contingent liabilities - Crown as administered by Inland Revenue

as at 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Supp Estimates $000
784,313	Tax in dispute	941,382	380,000	750,000
35,990	Unclaimed monies	40,657	-	-
820,303	Total quantifiable contingent liabilities	982,039	380,000	750,000

When a taxpayer disagrees with an assessment issued following the disputes process, the taxpayer may challenge that decision by filing proceedings with the Taxation Review Authority or the High Court.

Schedule of trust monies - Crown as administered by Inland Revenue

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Contributions $000	2006/07 Distributions $000
9,059	Child Support	24,109	188,501	(173,451)
178	Child Support - reciprocal agreements	153	10,223	(10,248)
9,237	Total trust monies	24,262	198,724	(183,699)

The accompanying accounting policies and notes form part of these financial schedules.

This trust account was established in accordance with sections 67, 68 and 139 of the Child Support Act 1991. Inland Revenue administers this trust account for amounts collected for non-custodial parents and the subsequent child support payments that are paid to the custodial parents.