Statement of Intent - 2004 - Introduction
Commissioner's introduction from the 2004-2005 Statement of Intent - Continued
Tackling the harder end of compliance
At the harder end of our compliance work, we have to deal with outstanding debt and returns and attempts to avoid or evade paying tax that is properly due and payable.
Since 1999 both collectable debt* and overdue returns have increased. One of the reasons for this is an increase in debt arising from our audit activity as a result of a growing sophistication in how some taxpayers are arranging their tax affairs. Our performance targets for debt are particularly challenging as we respond to increasing levels and complexity of debt. We are currently developing an on time filing and paying strategy, which we may start seeing some benefits from during 2005-06.
Undertaking audit activity is an integral part of our focus on ensuring long-term compliant behaviour. Our focus is to improve compliance among high risk taxpayers while maintaining compliance among lower risk taxpayers. To help us, we have developed a new framework to tighten our risk assessment and case selection processes, which means that we will be better able to identify and undertake our audit activities. We are also working to enhance our people capability in areas of technical excellence, business analysis skills and evasion auditing skills.
Our Industry Partnership initiative addresses the cash economy through focusing on improving compliance by working with particular industry groups to identify reasons for non-compliance and actively addressing them.
Ensuring we have the right capability
Our human resources strategy focuses on developing our readiness for the challenges of today and in the future. By meeting these challenges we will be recognised as professional, highly skilled and community-focused.
2003 climate survey
Our latest climate survey showed:
- that our people had a high level of confidence in Inland Revenue as an employer, 4% above the public and private sector benchmark
- that our people had a high level of confidence in our strategic direction, 16% above the benchmark
- increasing levels of support for our recognition of staff and their pay and benefits.
While the levels of support are encouraging, we need to continue to develop our people so that they can do their jobs effectively. Some of the key developments are:
* Collectable debt = all debt excluding child support, deferred debt, default assessments, and bankrupted/liquidated/written-off debt.
Leadership development
Through clear expectations and training we are building understanding and skills among our leaders. We are continuing to develop leaders who are able to get the best out of our people and who can create a positive work environment where people feel that they can contribute to the best of their abilities.
Building our relationship with our people
We want to be an organisation that our people are proud to work in, and that the community regards as professional, approachable, effective and efficient. We want to set high standards for work practices and at all times be responsible and ethical in the use of our powers. We will continue to enhance our relationships with the employee groups who are important representatives of a number of our people.
Increasing our people's skills
We need to develop our people's skills so that they are able to meet the expectations of the community. We want to be seen as being professional, skilled and operating with the highest ethical behaviour. This will allow us to provide services that will ensure compliance and meet the needs of our customers.
We now deal with more technical and complex work as a result of a changing business environment. This means that our people need to be better qualified and more technically skilled to deal with these situations. To achieve this, we continually assess the needs of our people and ensure a wide range of training opportunities.
The plans set out in this Statement of Intent will help us to ensure compliance. I am confident that the efforts of our people and their commitment to the direction we are taking as an organisation will see us achieve our outcomes.
David Butler
Commissioner of Inland Revenue
Date published: 16 Nov 2004
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