How Inland Revenue collects personal information indirectly and what we use it for.
What indirect collection means
Indirect collection is when we collect personal information about you from someone or somewhere else, rather than directly from you.
Why we collect information indirectly
As a tax authority, we receive information about people from employers, banks, government agencies, and other organisations, because:
- it’s the most efficient and reliable way to administer the tax and social policy systems
- it reduces the need for people to give us their information
- it helps us find and stop non-compliance and fraud.
If it’s reasonable in the circumstances, we’ll notify you if we collect your information indirectly.
We will not notify you if a legal exception applies. Examples include:
- if notifying you would prejudice the purpose of the collection
- when indirect collection is necessary to detect or investigate an offence
- protecting public revenue.
Routine indirect collections
We routinely collect information from the following sources.
Employers
Employers need to deduct tax from employees who receive salary or wages, including student loan repayments. Employers are legally required to report deductions to us.
We collect this information to confirm how much tax you pay and ensure you’re on the right tax code. Employers also give us KiwiSaver enrolment information if an employee chooses to enrol.
Tax agents or intermediaries
If you authorise a tax agent or intermediary to act for you, they’ll give us your information as part of managing your tax compliance or preparing and filing tax returns.
Payers of investment income
Banks and other businesses or organisations that pay investment income must send us information about who they pay. We use this to make sure people pay the right amount of tax and receive correct entitlements.
KiwiSaver providers
KiwiSaver providers send us details of people who enrol directly with them and let us know when members transfer or close their accounts. We get this information because we administer KiwiSaver through the pay-as-you-earn (PAYE) tax system and we need to know where to pay your contributions.
Service providers
Service providers acting for us may provide us with your information. For example if you apply for an IRD number and go to an AA Service Centre with identity documents, AA will send copies of the documents to us.
When we use debt collection agencies to contact customers, they may send us new contact details or tell us about instalment arrangements so we can update our records.
Research companies
We use research companies to invite customers to take part in surveys or research. If you take part in research, your individual responses can be given to us if you agree. Otherwise, we receive overall results only, not individual customer results.
Information sharing agreements
We may collect your personal information from other Government agencies, where we have an information sharing agreement in place. Our information sharing page has summaries of the agreements, including what information is shared.
We also collect personal information from international agencies if New Zealand tax law applies to you. We have double tax agreements with other countries and participate in international frameworks to exchange financial information to combat tax evasion.
Regulatory and enforcement functions
We collect and use personal information to carry out our regulatory or enforcement functions and we may collect this information indirectly rather than from you.
Regulatory functions
Regulatory functions include administering tax and social policy legislation, such as:
- income tax
- GST
- student loans
- child support
- Working for Families
- KiwiSaver.
We assess tax liabilities and eligibility for payments and monitor compliance with tax and social policy obligations.
Examples of us collecting information indirectly are when customers apply for financial relief or debt management and when we carry out audits. We may also check for property or vehicle ownership or the Personal Property Securities Register for assets.
Enforcement functions
Our enforcement functions include:
- carrying out audits and investigations
- reassessing tax or entitlements
- recovering unpaid amounts, including through legal proceedings
- tackling serious non-compliance, such as fraud or tax evasion.
We are legally authorised under revenue laws to collect information from 3rd parties if someone is not meeting their tax obligations, and we need the information to protect the integrity of the tax system.
We are also authorised to collect information:
- to apply the revenue laws
- to carry out our lawful functions.
When we carry out compliance activity, we do not tell people we are collecting information indirectly. Telling them would prejudice the purpose of the collection or undermine our ability to detect and investigate offences.
The sources we collect information from vary but could include:
- banks
- credit unions
- financial institutions
- utility companies (like power and phone providers)
- credit reporters
- local authorities.
We may collect information indirectly to confirm details you’ve given us. We do this to check you're eligible for entitlements like child support, Working for Families, and Family Boost. Making sure your details are right helps us ensure you claim the right amount and that tax requirements are met.
Use of publicly available personal information
We sometimes collect personal information that is publicly available on open-source websites or public registers. Examples include a Trade Me search to find out if you’re in business, or searching social media to find individuals who owe tax. We may also use this information for intelligence purposes.
We use public registers like the Companies Register to ensure our records are up-to-date, and the Land Transfer Register to ensure tax obligations are met when property is bought and sold.
Bulk datasets
We collect some personal information in bulk datasets which we get from businesses or organisations. The datasets may contain information about individuals, entities or groups of taxpayers.
We may use this information to administer the tax system, update our records or contact you. We may also give it to other government agencies who are entitled to the information under legislation.
Bulk external datasets process
Our information collection framework explains our collections principles.
Information Collection Framework
Anonymous information
We collect information when someone makes an anonymous report. This could be about a business or person evading or avoiding tax, or committing fraud. Anonymous information helps us investigate individuals or businesses that do not appear to be meeting tax obligations.
Tell us about tax evasion or fraud
More information
For more about how we manage personal information including security, retention and disclosures, see our privacy policy.
If you have any queries or concerns about our indirect collection of personal information, email us.