Percentage of tax payments made by customers on time
This indicator relates to customers paying their tax obligations for income tax, employment activities and GST in full and on time. On time means a payment is received or a return is filed within 7 days of the due date.
- 89.9% of tax payments were made by customers on time.
| Year | Percentage of tax payments made by customers on time |
|---|---|
| 2017 | 87.9% |
| 2018 | 87.9% |
| 2019 | 86.8% |
| 2020 | 85.9% |
| 2021 | 89.9% |
Results increased by 4 percentage points this year to 89.9%. This was driven by increases in payment timeliness across all 3 products.
- 5.1 percentage points for employment activities.
- 4.3 percentage points for income tax.
- 2.7 percentage points for GST.
Since the introduction of mandatory payday filing, we have seen an increase in employment activity payments made on time.
This indicator is also an output measure in the Our services section. We exceeded the output target of 85%.
Percentage of returns filed by customers on time
This indicator relates to customers filing their tax obligations for income tax, employment activities and GST on time. On time means a payment is received or a return is filed within 7 days of the due date.
- 94.3% of returns were filed by customers on time.
| Year | Percentage of tax payments made by customers on time |
|---|---|
| 2017 | 85.0% |
| 2018 | 85.4% |
| 2019 | 85.2% |
| 2020 | 93.2% |
| 2021 | 94.3% |
Results increased by 1.1 percentage points, driven by a 1.8 percentage point increase in the timeliness of income tax returns and a 1.5 percentage point increase in the timeliness of employment activity returns. The increase in employer filing timeliness is due in part to the requirements to qualify for the Wage Subsidy.
This indicator is also an output measure in the Our services section. We exceeded the output target of 85%.
Automatically issued income tax refunds and tax to pay get progressively smaller
One of our case studies looks at how automatic income tax assessments for individuals are making tax simpler for New Zealanders. With more detailed and timely reporting of employment and investment income, we expect average refund and tax-to-pay amounts to reduce over time.
Year 3 of automatically issued income tax assessments
Customer sentiment - tax morale
Research in New Zealand and internationally has identified that attitudes towards tax and trust as are important factors in tax compliance. Tax morale results from our Customer Experience and Perceptions Survey show ratings of 4 or more out of 7, where 7 is ‘strongly agree’.
- 81% of of customers agreed they feel good about paying their tax, compared to 84% in 2019-20.
- 83% of customers agreed that Inland Revenue helps people who are trying to get things right, compared to 86% in 2019-20.
- 88% of customers agreed that if someone tries to avoid paying the right amount, they will get into trouble with Inland Revenue. This compares to 93% in 2019-20.