Statement of Intent - 2004 - Part 2

Performance objectives Output Class 6 - Taxpayer Audit - pages 71-72

OUTPUT CLASS 6 - Taxpayer Audit

Description
This output class involves:

• verifying that tax obligations have been met by auditing a selection of taxpayers
• the management of tax litigation.

All audit outputs

Quality
At least 85% of all cases closed meet our quality standards.

Output 6.1 Individual and small to medium enterprise audit

Description
This output involves the audit of businesses with a turnover of up to $100 million (excluding groups in the Corporates segment). It includes audits of duties, non-resident, investment, salary and wage earners.

Quantity
In the year ended 30 June 2005 we will complete between 778,000 and 863,000 (828,000 and 848,000) hours conducting all audit activities.

Quality
In the year ended 30 June 2005 we will assess at least $535 ($600) per hour for all activity, including aggressive tax issues and tax evasion.

Timeliness
On average, complete general audits within 6 months.

On average, complete all-risk audits within 12 months.

On average, complete disputed cases within 24 (14) months.

85% (90%) of open cases (including disputed open cases) are less than 24 months old.

Output 6.2 Corporate audit

Description
This output involves auditing and providing services to businesses with a group turnover of greater than $100 million, plus other specific groups.

Quantity

In the year ended 30 June 2005 we will complete between 168,000 and 198,000 (191,000 and 201,000) hours conducting investigations, audits and checks and risk assessment.

Timeliness
On average, complete investigations within 17 months.

Output 6.3 Litigation Management

Description
This output involves the management of litigation of disputed tax cases, including the requirement to state the case through to resolution by the courts.

Quantity
75 to 100 cases resolved during the period.

Quality
At least 66% of the cases dealt with by courts and those settled out-of-court will be resolved in favour of Inland Revenue based on the:

• value of the cases
• number of cases.

No judgments in the courts will contain adverse judicial comments on the department's conduct of the litigation.

Timeliness
All timetable requirements imposed by the courts on the department's solicitors in tax cases will be met, resulting in no requests for adjournments, enlargements or extensions of time.

Cost
During 2004-05, this output class will be provided within the appropriated sum of $118,016,000 (GST-inclusive).

During 2004-05, the costs of outputs (GST-exclusive) to be supplied within this class are:

Other pages in: Statement of Intent - 2004 - Part 2

• Statement of responsibility - page 47
• Statement of accounting policies - pages 48-50
• Statement of Forecast Financial Performance - page 51
• Statement of Forecast Movements in Equity - page 52
• Statement of Forecast Financial Position - page 53
• Statement of Forecast Cash Flows - page 54
• Statement of Forecast Commitments - page 55
• Details of Forecast Fixed Assets by Category - page 56
• Summary of Forecast Financial Information - Page 57
• Summary of Departmental Output Classes - page 58
• Reconciliation of Statement of Intent to 2004 - 2005 Estimates - page 59
• Performance objectives Output Class 1 - Policy Advice - pages 60-62
• Performance objectives Output Class 2 - Adjudication and Rulings -
  pages 63-64
• Performance objectives Output Class 3 - Information Services - pages 65-66
• Performance objectives Output Class 4 - Revenue Assessment and Collection - pages 67-68
• Performance objectives Output Class 5 Managment of Debt and Outstanding Returns - pages 69-70
• Performance objectives Output Class 7 - Assessment and Collection of Child Support - pages 73-75
• Performance objectives Output Class 8 - Collection of ACC Levies - page 76

Date published: 16 Nov 2004

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