Additional information
Major legislation administered by Inland Revenue
- Child Support Act 1991
- Estate and Gift Duties Act 1968
- Gaming Duties Act 1971
- Goods and Services Tax Act 1985
- Income Tax Act 2007
- Stamp and Cheque Duties Act 1971
- Student Loan Scheme Act 1992
- Tax Administration Act 1994
- Taxation Review Authorities Act 1994
- Unclaimed Money Act 1971
- Parts of the KiwiSaver Act 2006
- Parts of the Parental Leave and Employment Protection (Paid Parental Leave) Act 2002
Figure A - Components of overdue debt by tax type (at 30 June 2010)
|
Debt type $million |
Income tax |
GST | PAYE |
Student loans |
Working for families |
Other tax |
Total debt |
1 Year change |
1 Year change (%) |
Total debt cases |
|---|---|---|---|---|---|---|---|---|---|---|
| Non-collectable debt | ||||||||||
| Deferred debt | $599.1 | $107.9 | $11.1 | $0.8 | $0.7 | $10.2 | $729.8 | -$233.3 | -24% | 1,240 |
| Insolvency debt | $193.1 | $410.2 | $121.3 | $0.1 | $0.4 | $16.6 | $741.6 | $193.9 | 35% | 2,751 |
| Pending write-off | $86.1 | $62.3 | $11.5 | $21.0 | $11.3 | $0.6 | $192.8 | -$1.4 | -1% | 9,008 |
| Total non-collectable debt | $878.3 | $580.3 | $143.9 | $21.9 | $12.4 | $27.4 | $1,664.3 | -$40.8 | -2% | 12,999 |
| Collectable debt | ||||||||||
| Debt under instalment | $389.0 | $255.8 | $93.3 | $82.7 | $108.3 | $8.6 | $937.7 | -$167.4 | -15% | 156,664 |
| Residual collectable debt | $890.8 | $973.2 | $295.2 | $220.1 | $117.6 | $51.7 | $2,548.6 | $298.4 | 13% | 194,151 |
| Total collectable debt | $1,279.8 | $1,229.0 | $388.4 | $302.8 | $225.9 | $60.3 | $3,486.3 | $131.1 | 4% | 350,815 |
| Total debt | $2,158.1 | $1,809.4 | $532.3 | $324.7 | $238.3 | $87.7 | $5,150.6 | $90.3 | 2% | 363,814 |
| 1 year change | -$140.1 | $144.5 | $59.9 | $18.7 | $38.3 | -$31.0 | $90.3 | - | - | 10,423 |
| 1 year change (%) | -6% | 9% | 13% | 6% | 19% | -26% | 2% | - | - | 3% |
| Collectable debt/total debt | 59% | 68% | 73% | 93% | 95% | 69% | 68% | - | - | 96% |
| Instalment debt/total debt | 18% | 14% | 18% | 25% | 45% | 10% | 18% | - | - | 43% |
| Customers with debt | 169,713 | 96,821 | 27,485 | 92,453 | 58,364 | 22,232 | n/a* | - | - | - |
* A customer may have more than one overdue tax type within their Inland Revenue debt case, so they may be represented under more than one tax type.
Figure B - Age and value of overdue debt (at 30 June 2010)
| Case value and case weighted age bands | Debt type ($ million) | Debt cases | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 0-6 months | 6-12 months | 1-2 years | > 2 years | Total | 0-6 months | 6-12 months |
1-2 Years |
> 2 years |
Total |
|
| Non-collectable debt | ||||||||||
| < $1K | $0.5 | $0.2 | $0.2 | $0.2 | $1.1 | 1,486 | 691 | 742 | 530 | 3,449 |
| $1K -$5K | $1.4 | $1.1 | $3.3 | $2.7 | $8.6 | 648 | 441 | 1,133 | 1,014 | 3,236 |
| $5K-$10K | $1.0 | $1.0 | $4.2 | $3.5 | $9.7 | 139 | 143 | 573 | 486 | 1,341 |
| $10K-$50K | $3.0 | $4.5 | $12.3 | $31.4 | $51.1 | 137 | 192 | 577 | 1,260 | 2,166 |
| $50K-$100K | $2.7 | $6.3 | $15.5 | $37.9 | $62.5 | 39 | 86 | 217 | 538 | 880 |
| $100K-$500K | $8.5 | $29.5 | $110.5 | $159.3 | $307.8 | 42 | 136 | 487 | 738 | 1,403 |
| $500K-$1million | $7.6 | $15.8 | $62.4 | $97.7 | $183.5 | 12 | 25 | 88 | 138 | 263 |
| >$1million | $31.3 | $114.0 | $191.0 | $703.7 | $1,040.0 | 8 | 30 | 68 | 155 | 261 |
| Non-collectable debt | $55.9 | $172.4 | $399.5 | $1,036.4 | $1,664.3 | 2,511 | 1,744 | 3,885 | 4,859 | 12,999 |
| Collectable debt | ||||||||||
| < $1K | $27.3 | $3.6 | $6.9 | $4.2 | $41.9 | 98,888 | 11,847 | 19,901 | 8,871 | 139,507 |
| $1K -$5K | $112.4 | $37.5 | $82.1 | $50.4 | $282.4 | 47,861 | 14,026 | 28,055 | 18,909 | 108,851 |
| $5K-$10K | $83.5 | $42.9 | $103.8 | $73.6 | $303.8 | 12,218 | 6,099 | 14,063 | 10,191 | 42,571 |
| $10K-$50K | $187.9 | $146.1 | $274.2 | $379.5 | $987.7 | 9,648 | 6,798 | 14,645 | 16,837 | 47,928 |
| $50K-$100K | $66.4 | $79.9 | $132.3 | $219.3 | $497.9 | 978 | 1,134 | 1,905 | 3,177 | 7,194 |
| $100K-$500K | $115.5 | $152.3 | $266.9 | $266.8 | $801.6 | 596 | 821 | 1,438 | 1,540 | 4,395 |
| $500K-$1million | $28.3 | $32.6 | $49.7 | $40.4 | $151.0 | 41 | 46 | 73 | 58 | 218 |
| >$1million | $78.9 | $76.8 | $71.0 | $193.3 | $420.0 | 28 | 31 | 35 | 57 | 151 |
| Total collectable debt | $700.1 | $571.7 | $986.9 | $1,227.5 | $3,486.3 | 170,258 | 40,802 | 80,115 | 59,640 | 350,815 |
| Total debt | $756.1 | $744.2 | $1,386.4 | $2,263.9 | $5,150.6 | 172,769 | 42,546 | 84,000 | 64,499 | 363,814 |
Figure C - Age of child support debt
| Weighted case age | Debt value $million | Debt value (%) | Debt cases | % of Debt cases |
|---|---|---|---|---|
| Under arrangement | ||||
| 0-6 months | $14 | 0.7% | 17.297 | 12.4% |
| 6-12 months | $24 | 1.3% | 11,441 | 8.2% |
| 1-2 years | $53 | 2.7% | 13,519 | 9.7% |
| >2 years | $873 | 44.9% | 37,662 | 27.1% |
| Total | $964 | 49.6% | 79,919 | 57.4% |
| Uncollectable | ||||
| 0-6 months | $0 | 0.0% | 1 | 0.0% |
| 6-12 months | $0 | 0.0% | 2 | 0.0% |
| 1-2 years | $1 | 0.0% | 20 | 0.0% |
| >2 years | 272 | 14.0% | 2,622 | 1.9% |
| Total | $273 | 14.0% | 2,645 | 1.9% |
| Not yet under arrangement | ||||
| 0-6 months | $16 | 0.8% | 20,781 | 15.0% |
| 6-12 months | $21 | 1.1% | 5,884 | 4.2% |
| 1-2 years | $43 | 2.2% | 8,036 | 5.8% |
| >2 years | $627 | 32.3% | 21,871 | 15.7% |
| Total | $707 | 36.4% | 56,572 | 40.7% |
| Grand Total | $1,944 | 100.0% | 139,136 | 100.0% |
Figure D - Analysis of New Zealand-based and overseas student loan borrowers (at June 30)
| 2009 | 2010 | % change | |
|---|---|---|---|
| Number of borrowers | |||
| Borrowers based: | |||
| - in New Zealand | 479,462 | 502,362 | 4.8% |
| - overseas | 82,337 | 85,137 | 3.4% |
| Total | 561,799 | 587,499 | 4.6% |
| Nominal balances ($million) | |||
| Borrowers based: | |||
| - in New Zealand | 7,199 | 7,743 | 7.6% |
| - overseas | 1,910 | 2,087 | 9.3% |
| Total | 9,109 | 9,830 | 7.9% |
Figure E - Telephone service factor
| 2007-08 | 2008-09 | 2009-10 | |
|---|---|---|---|
| Priority queues - calls answered within one minute | |||
| Business (other) | 69.3% | 79.5% | 87.1% |
| Employer | 62.3% | 66.1% | 83.9% |
| KiwiSaver | 81.7% | 75.5% | 76.2% |
| Receivables | 54.8% | 55.9% | 68.4% |
| Student loans (non-resident) | 67.1% | 79.3% | 92.5% |
| Other priority | 74.5% | 74.5% | 85.1% |
| Total | 67.7% | 67.0% | 77.9% |
| General service queues - calls answered within four minutes | |||
| Child support | 92.4% | 96.6% | 83.9% |
| General business | 50.5% | 57.3% | 70.3% |
| General families and individuals | 47.1% | 60.1% | 71.1% |
| GST | 56.7% | 69.5% | 82.8% |
| Student loan | 57.3% | 71.2% | 78.7% |
| Tax agent | 64.8% | 65.6% | 82.9% |
| Other general | 81.4% | 89.7% | 78.1% |
| Total | 59.1% | 70.8% | 76.4% |
Figure F - Response time for all correspondence
| Response time | 1 week | 2 weeks | 3 weeks | 4 weeks | 5 weeks | 6 weeks | 7 weeks | 8 weeks | >8 weeks |
|---|---|---|---|---|---|---|---|---|---|
| Volume | 3,800,811 | 347,654 | 151,472 | 96,159 | 53,844 | 36,751 | 27,737 | 18,594 | 36,763 |
| % total (cumulative) | 83% | 91% | 94% | 96% | 97% | 98% | 99% | 99% | 100% |
Figure G - Inland Revenue employee distribution by business unit
| Business unit | Number of staff |
|---|---|
| Service delivery | 4,164 (76%) |
| Information design and systems | 628 (11%) |
| Corporate services | 525 (10%) |
| Policy advice | 106 (2%) |
| Office of the Chief Tax Counsel | 71 (1%) |
| Buisness transformation | 15 (0%) |
Note: The full-time equivalent (FTE) total is larger than sum of business units because two FTEs report to the Commissioner rather than to a specific business unit.
Figure H - Historical expenditure on consultants and contractors
|
2005-06 $000 |
2006-07 $000 |
2007-08 $000 |
2008-09 $000 |
2009-10 $000 |
|
|---|---|---|---|---|---|
| Total expenditure on consultants and contractors | 27,835 | 50,378 | 70,688 | 59,232 | 30,829 |
| Percentage of total expenditure | 5.8% | 9.5% | 11.6% | 9.0% | 5.1% |
Figure I - Expenditure on consultants and contractors
|
2008-09 Actual $000 |
Number of staff |
2009-10 Actual $000 |
|---|---|---|
| 24,878 | Information technology | 13,559 |
| 13,433 | Specialist advice and project management services | 7,922 |
| 1,605 | HR and change management services | 943 |
| 12,698 | Tax issues | 1,941 |
| 2,860 | Property | 4,419 |
| 1,000 | Research | 1,294 |
| 662 | Communications | 155 |
| 2,096 | Other | 596 |
| 59,232 | Total consultants and contractors | 30,829 |
Figure J - Property information (at 30 June)
| 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|
| Accommodation area (m2) | 111,263 | 111,131 | 133,193 | 117,938 | 121,496 |
| Other area (m2) | 6,864 | 6,864 | 7,720 | 5,764 | 5,147 |
| Total area leases (m2) | 118,127 | 117,995 | 140,892 | 128,109 | 126,643 |
| Vacant accommodation (m2) | 0 | 0 | 0 | 4,407 | 719 |
| Vacant as a % of total | 0.00 | 0.00 | 0.00 | 3.44 | 0.57 |
| Average space per person (m2) | 19.39 | 18.64 | 20.92 | 18.36 | 19.22 |
| Totat annual rental per person ($) | 4,370 | 4,426 | 5,012 | 4,787 | 4,960 |
| Utility costs per person ($) | 862 | 855 | 894 | 887 | 855 |
| Total occupancy per person ($) | 5,232 | 5,281 | 5,906 | 5,674 | 5,815 |
| Fit-out costs per person ($) | 2,472 | 2,288 | 3,277 | 2,637 | 2,347 |
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