Statement of Intent 2006-09: Part One - Setting the scene
Commissioner's introduction
In April 2006, the government determined its priorities for the coming decade. The priorities are economic transformation, families - young and old - and national identity. Inland Revenue has an important role in supporting these priorities both directly and indirectly. The design and administration of the tax system and the revenue we collect contribute to New Zealand's economic transformation and national identity. The social support programmes we administer enable families to have the support and choices they need to be secure and reach their full potential.
Inland Revenue's primary outcome also links to these priorities. We work towards improving the economic and social wellbeing of New Zealanders through our roles in collecting revenue and making payments that help people to participate in society.
Our tax system operates on the premise that customers will meet their obligations voluntarily. Accordingly, we strive to make it as easy as possible for them to do so but hard to avoid. These are important approaches for maintaining high levels of public confidence in our administration of the tax system.
In recent years, the government has given us additional responsibilities (such as Working for Families and KiwiSaver). We have shown that we are able to cope very successfully with a broader and more complex role.
On an ongoing basis our research clearly shows that the community believes we perform our role well.
Strategic direction setting
We operate in an environment of constant change, which presents challenges for how we do our work. These changes include:
- economic conditions that may influence a business's ability to meet its tax obligations
- new responsibilities which increase the number and complexity of interactions we have with our customers
- growing demand for our services, particularly in our call centres
- changing expectations for our services, such as the use of electronic channels that allow our customers to access information when and how they want to.
In 2001, we released our five-year business plan The Way Forward. With the changes in our environment, our customers' expectations and the growth in scope of our functional responsibilities, we have developed our new business plan, Our Way Forward, which applies from 1 July 2006. In our new business plan we set out some new aspirations for the future. We clarified our new strategic direction and identified how we can deliver new and existing business while taking advantage of all our skills and technologies.
Our new strategic direction builds upon the previous business plan. Looking ahead in Our Way Forward we have set out our desired future. Some of these aspirations flow from our previous business plan while others are new:
- Inland Revenue is responsive in meeting the changing and increasing expectations of government and society
- We make it easy for customers to get it right and hard to get it wrong
- Society has confidence that appropriate action will be taken against customers who do not comply
- Increasingly, paying tax is seen as contributing to society
- We are professional, approachable, effective and efficient.
To make our desired future a reality we will:
- target and tailor our activities through understanding our customers
- optimise organisational efficiency and reduce compliance costs over time
- create an environment which promotes compliance
- continually invest in our people and the tools to deliver our future outcomes.
These are important areas of focus to ensure we best align our work to deliver our outcomes. There is more detail about our strategic direction set out in Part Three.
To ensure the successful delivery of Our Way Forward, we have also looked at how to best organise ourselves to achieve our desired future and deliver on our outcomes. We will be progressively implementing these changes.
An ongoing and important area of focus is to continue to invest in our people. This is critical if we are to be able to successfully lead our department and be an agile and responsive organisation.
Challenges we face
As a large department with broad responsibilities we face a number of significant operational challenges. In addition, we have important new programmes to implement such as KiwiSaver.
We continue to see growth in our customer base, which generates a growing demand for our services, particularly in our call centres.
Conclusion
I am proud of what our people have achieved and I am confident that we are well placed to successfully deliver our outcomes which will meet the expectations of the government and the community.
David Butler
Commissioner of Inland Revenue
Date published: 08 Aug 2006
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