This category is limited to Inland Revenue undertaking investigation, audit and litigation activities.
| Budgeted to spend | Spent | Achieved |
|---|---|---|
| $126.0 million | $122.6 million | 2 out of 3 measures |
How we performed
This year we continued our focus on compliance work as you can read on:
Revenue is available to fund government programmes and services
Implementing Budget 2024 initiatives
$4.3 billion in overdue tax debt collected
Ensuring fairness for all taxpayers
In 2024–25, we:
- opened 7,600 audits (5,100 in 2023–24)
- closed 6,100 audits (4,300 in 2023–24)
- assessed $1,026 million in additional tax from audits ($460 million in 2023–24).
Performance measure results
This year, we achieved 2 out of 3 targets, an improvement on 2023–24 when we achieved 1 out of 3.
| Performance measure | 2023–24 actual | 2024–25 target | 2024–25 actual | 2025–26 target |
|---|---|---|---|---|
| Percentage of customers whose compliance behaviour improves after receiving an audit intervention | 69.3% | 85% | 62.3% (not achieved) | Evaluative assessment see page Disclosure of judgements |
| This measure is derived from a sample-based review to gauge the impact of audit activity on customer compliance behaviour across a range of compliance aspects such as return filing and payment behaviour, and whether the customer has addressed the previous audit discrepancy area.
Not achieved—Results were lower across all compliance aspects than in 2023–24, with a significant decrease for debt and payment compliance. This may reflect the ongoing impact of economic conditions on customers. |
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| The identified value of compliance activities over associated costs | $9.50 | $10.00 | $11.81 (achieved) | $10.00 |
| This measure looks at the value of revenue and recovered or disallowed expenditure from a range of compliance interventions (closed audits, real-time integrity reviews and voluntary disclosures) over the costs associated with compliance interventions. See page for more about this. Disclosure of judgements Our improved performance reflects an increased focus and capacity with the additional investment in compliance in Budget 2024. This has resulted in more audits being opened and closed and the resolution of older and more complex cases. |
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| Percentage of litigation judgments found in favour of the Commissioner | 88.2% | 75% | 85.2% (achieved) | 75% |
| The measure captures the proportion of litigation judgments where the decision has been found in favour of the Commissioner on all issues in the dispute. | ||||
All targets are unaudited.
What it cost
| Revenue | Actual 2024 ($000) | Actual 2025 ($000) | Unaudited revised budget 2025 ($000) | Unaudited budget 2025 ($000) | Unaudited forecast 2026 ($000) |
|---|---|---|---|---|---|
| Revenue from the Crown | $108,553 | $125,805 | $125,805 | $165,241 | $151,224 |
| Other revenue | $199 | $197 | $149 | $149 | $149 |
| Total revenue | $108,752 | $126,002 | $125,954 | $165,390 | $151,373 |
| Total expenses | $102,665 | $122,604 | $125,954 | $165,390 | $151,373 |
| Net surplus or (deficit) | $6,087 | $3,398 | - | - | - |
Last updated:
19 Nov 2025