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In this section
The Legal and Technical Services (LTS) business unit is a team of legal and technical specialists who provide tax technical and legal support to Inland Revenue staff.
LTS is part of Investigations and Advice which sits within the Service Delivery group. Its role is to protect the integrity of the tax system and to support compliance by:
- providing independent advice and support services to assist in the resolution of complex tax issues (some which include social policy matters)
- litigating and prosecuting where enforcement is necessary
- representing the Service Delivery group and other business groups in identifying and resolving issues arising from new legislation, court cases and through tax disputes
- developing and monitoring Standard Practice Statements, Operational Statements, Depreciation Determinations and the like.
Manager, LTS Technical Standards
PO Box 2198
A customer with:
Adjudication cases are classified (depending on the degree to which the position of the Commissioner of Inland Revenue was upheld) into the following five categories:
|Customers in debt|
Individuals or entities with overdue debt amounts.
Includes: companies, diplomatic missions, government departments, individuals, Māori authorities, partnerships, societies/clubs, superannuation funds, trusts, unit trusts.
We distinguish between three groups of filing channels:
GST turnover is calculated from GST returns as the sum of gross sales in the year ended 31 March.
Customers not registered for GST or PAYE and not belonging to large enterprises (LE) and non-profit organisations (NPO).
|Large enterprise (LE)|
|Liable parent (formerly non-custodial or paying)|
A parent who does not take care of the child on an ongoing basis, excluding those who are not paying child support but have debt in child support.
|Non-profit organisation (NPO)|
All entities exempted from income tax and not belonging to large enterprises with the following exemption types:
all entities except building societies and friendly societies with "other" exemption type.
|Overdue child support debt|
The amount of an employer's or a liable parent's liability which is in arrears (due, but not paid), together with overdue receiving carer overpayments.
|Overdue debt case age|
The period of time after the debt case is opened.
|Overdue debt cases|
A debt case is created when a due date for payment has passed without full payment being made. Other overdue debt elements may be added as they become overdue. The case will close when all overdue debt has been fully resolved.
|Overdue debt element|
A specific tax type and time period for which a debt is due. A customer can have one or more debt elements.
|Overdue student loan debt|
The amount of repayment obligation for a tax year that has remained unpaid by a borrower after the due date.
|Overdue tax debt|
The amount of tax that remains unpaid after the due date for payment. This includes any penalty and interest applied to the debt.
|Overdue Working for Families Tax Credits debt|
When recipients were paid more than their entitlement and consists of the remaining amount they fail to repay by the due date and any penalty and interest applied to the debt.
|Percentage of payments made on time|
A ratio of number of late payments to a total number of payments per tax year. A payment is considered to be paid on time if it is paid in full within seven days after the due date.
|Percentage of returns filed on time|
A ratio of number of late filings to a total number of filings per tax year. A return is considered to be on time if it is filed within seven days after the due date.
Notes: A seven day tolerance is applied.
|Receiving carer (formerly custodial parent)|
A person is an eligible custodian of a child if that person:
Registered customers include all customers registered with Inland Revenue, either individuals or entities.
Includes only taxes and duties collected by Inland Revenue. Figures are unconsolidated.
Note: The Treasury publishes monthly financial statements prepared on a consolidated basis, meaning they eliminate tax transactions between departments, state-owned enterprises and Crown entities.
|Revenue collected from Liable parents (formerly non-custodial or paying)|
Includes all revenue collected within each tax year by Inland Revenue including payments related to other time periods.
A penalty imposed as a percentage of a tax shortfall (a deficit or understatement of tax), resulting from certain actions on the part of a taxpayer. Shortfall penalties apply to most taxes and duties. The exceptions are student loan repayments and child support repayments by liable parents.
The law divides these actions into five categories of fault or breach, with a specified penalty rate for each category (Lack of reasonable care, Unacceptable interpretation, Gross carelessness, Abusive tax position, Evasion).
|Small and medium enterprise (SME)|
Source deductions include:
A tax agent prepares the annual returns of income for 10 or more customers in one of the following ways:
A tax agent must be a registered Inland Revenue customer.
Taxable income for individuals is income on which their personal income tax is assessed for the March year.
|Weighted overdue debt case age|
The average age of the case elements weighted by their dollar value.
|Working for Families Tax Credits|
The Working for Families Tax Credits (WfFTC) consists of the following credit types:
Note: WfFTC was collectively known as "family assistance".