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A tax and social policy system that is fair and coherent - and is complied with - is essential to New Zealand’s continued stability and prosperity. It supports the Government’s ability to achieve social, economic, and fiscal priorities. These priorities include further COVID-19 recovery initiatives; work on housing affordability; research and development; responding to climate change; improving tax rules for digital multinationals to give New Zealand businesses a level-playing field; addressing inequality and ensuring everyone pays their fair share.

Inland Revenue plays an important role in contributing to the economic and social wellbeing of New Zealand. My role, as the Minister of Revenue, is to ensure Inland Revenue has the resources and mandate it needs to help people pay and receive the right amounts. That means supporting people to get things right from the start and reducing opportunities for non-compliance.

Our tax system relies on the majority of people paying the right amount of tax. People by and large believe that paying taxes is for the greater good. Tax funds important public services they, their families and society benefit from. People are finding it easier to comply due to Inland Revenue’s transformation. Where people do not comply and do not pay their fair share there are clear rules and enforcement powers that can be used.

By mid-2022 Inland Revenue will have completed its multi-year, multi-stage transformation programme to modernise the revenue system and make tax simpler, more open and certain for New Zealanders. Government is already seeing some of the benefits of its investment in the programme, such as the rapid and effective way Inland Revenue was able to implement measures to support businesses and individuals impacted by COVID-19.

I am confident that by 2023-24 the Government and taxpayers will see the full value of the investment they have made.

Tax policy work programme

Government’s tax policy work programme for the next 18 months will support the response to COVID-19 and rebuild the economy, enhance productivity and increase the fairness of the tax system.

This Statement of Intent sets out Inland Revenue’s plans for helping the Government to meet its economic and social policy goals. I am satisfied that the information on future operating intentions is in accordance with sections 38 and 40 of the Public Finance Act 1989, and is consistent with the policies and performance expectations of the Government. 

Hon David Parker

Minister of Revenue

Last updated: 25 Nov 2021
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