Statement of Intent 2008-11: Part one - Introduction
Nature and scope of our functions
Inland Revenue is the government's principal revenue collection agency. We also administer and deliver a range of social support programmes, working with other government agencies. We employ approximately 6,000 people and have offices in 17 locations throughout New Zealand.
Role and purpose
Our responsibilities fall into three areas:
Policy advice
We work with The Treasury to advise government on all aspects of tax policy and on social policy measures that interact with the tax system.
Revenue collection
We assess and collect approximately 89% of core Crown revenue. This has increased by about six percentage points over the five years to June 2007. Approximately 70% of that revenue is collected through income tax from individuals, companies and entities such as trusts, with GST accounting for most of the balance.
We also collect several special-purpose duties and levies and administer unclaimed monies.
Administration of social support programmes
We have responsibility for the administration and delivery of:
- Working for families tax credits-we distribute entitlements to support families in work (the programme is jointly administered with the Ministry of Social Development).
- Child support-we have policy and service delivery responsibility for child support, acting as the intermediary between paying parents and parents who have custody of children.
- Student loans-we collect loan repayments from borrowers (the programme is jointly administered with the Ministries of Education and Social Development).
- KiwiSaver-we are the central administrator of the programme. We collect payments and forward them to external providers for investment. Other stakeholders in the scheme are The Treasury, the Ministry of Economic Development, Housing New Zealand Corporation and the Retirement Commission.
- Paid parental leave-we deliver paid parental leave payments on behalf of the Department of Labour to parents who take leave from their job or business to care for a new baby.
Scope of operations
Our Policy Advice Division gives advice to government (with The Treasury), drafts tax legislation, supports bills through the parliamentary process, negotiates New Zealand's network of double tax agreements and forecasts tax revenue.
Our Service Delivery business group has four main areas:
- Customer Insight-making sure the customers' voice is represented in our activities and delivering face-to-face customer services in the community.
- Assistance-interacting with customers as our "public face". Services are delivered through our call centres, over the counter, through correspondence and electronic channels.
- Assurance-delivering the enforcement part of our compliance strategy through auditing, collecting overdue debt and returns, providing technical advice and identifying and managing risk.
- Litigation Management-managing Inland Revenue's litigation.
Our Office of the Chief Tax Counsel:
- adjudicates on disputed assessments between the customer and the Commissioner
- identifies and applies the correct interpretation of the Inland Revenue Acts and other relevant law
- delivers public and private binding rulings.
Our Business Development and Systems business group manages our core business systems (including information technology), our design and project management processes, operational planning and finance services and high volume activities such as, return and payment processing and routine customer correspondence.
Our People, Capabilities and Governance business group provides specialist advice on long-term direction, corporate management policies and practices, and the development of our people.
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 1994
- Income Tax Act 2004
- Income Tax Act 2007
- Stamp and Cheque Duties Act 1971
- Student Loan Scheme Act 1992
- Tax Administration Act 1994
- Taxation Review Authorities Act 1994
- KiwiSaver Act 2006 Parts 1 to 3 and Schedule 3 and provisions in Part 5 as authorised by the Prime Minister. The Ministry of Economic Development administers Part 4 and Schedules 1 and 2 and provisions in Part 5 as authorised by the Prime Minister (refer to section 224).
- Aspects of the Parental Leave and Employment Protection (Paid Parental Leave) Act 2002 are administered by Inland Revenue under authority delegated (under section 71ZA of that Act) by the Chief Executive of the Department of Labour.
Date published: 30 Jun 2008
Back to top