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Statement of Intent - 2004 - Part 1

Strengthening our customer focus - page 22

Figure 14

Customer groups as a basis for operational strategies

Customer group What makes them unique?	Who are they?	Why are they important to Inland Revenue?
Large enterprises	Primarily businesses with turnover greater than $100 million, but also includes central and local government agencies	Large enterprises represent only 0.19% of taxpayers, but generate over 45% of all revenue assessed. In the 2002 tax year they generated $13.6 billion of revenue out of a total of $30 billion in the seven largest revenue streams. They are unique both in their turnover and the level of sophistication they bring to managing their tax obligations.
Small - medium enterprises	Taxpayers who receive income from business enterprises, with a turnover up to $100 million	Eighty-six percent of businesses employ five or fewer staff. These businesses and self-employed individuals contribute around 40% of business income tax revenue. Complying with the tax system contributes to business compliance costs and they would like to minimise these costs.
Individuals	Salary and wage earners Student loan borrowers	Salary and wage earners represent 64% of taxpayers. Most, and in many cases all, of their tax is paid by their employer (through PAYE) or by their bank (tax on interest and investments). Therefore, there is minimal interaction with Inland Revenue other than to receive rebates, except when they have income from other sources. Student loan borrowers are a growing customer area, with $387 million of loans being repaid in 2002-03. There is a high level of compliance with repayment obligations and most payments are made through salary deductions, although borrowers overseas are more difficult to assist.
Families	Child support Family assistance and paid parental leave	Families need to be able to participate in the community and workforce and are an important contributor to the wellbeing of society. Families have quite different needs as sometimes they are only customers for a short period of time (paid parental leave); their entitlement levels may change frequently (family assistance), or compliance requirements may come at a time when people are under a considerable amount of pressure as a result of the breakdown of a relationship (child support).
Not for profit organisations	Charities and non-governmental organisations	These organisations are unique in a number of ways. For example: They are generally set up to generate community spirit and wellbeing, whereas businesses generate wealth for their owners and are taxed on this basis. They can lack the business expertise of other "business" taxpayers and therefore are less certain about their tax obligations.
Intermediaries tax intermediaries systems intermediaries	Groups that pay (for example, payroll companies) or assess tax on another taxpayer's behalf (for example, accountants).	Intermediaries are professionals who help taxpayers manage their tax obligations, so making the process easier for their clients, and reducing their need to contact Inland Revenue. Taxpayers choose their intermediary based on their requirements. They opt for either someone to manage: the relationship and deal with Inland Revenue on their behalf, or data and information on their behalf to facilitate and simplify their dealings with Inland Revenue.

Other pages in: Statement of Intent - 2004 - Part 1

Date published: 16 Nov 2004

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