Inland Revenue Department (New Zealand)
Inland Revenue or Inland Revenue Department (IRD; Māori: Te Tari Taake) is the public service department of New Zealand charged with advising the government on tax policy, collecting and disbursing payments for social support programmes, and collecting tax.
Te Tari Taake | |
Agency overview | |
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Formed | 1878 |
Preceding agency |
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Jurisdiction | New Zealand |
Headquarters | 55 Featherston Street, Wellington 6012 |
Employees | 3,923[1] |
Annual budget | Total budget for 2022/23 Vote Revenue $747,381,000[2] |
Minister responsible |
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Agency executive |
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Website | www |
History
editInland Revenue started out as the Land Tax Department in 1878. The department was renamed the Land and Income Tax Department in 1892 with the central office set up in Wellington.
Only in 1952, when the organisation joined with the Stamp Duties Department, was the organisation known as the Inland Revenue Department.
In 1995, a Rewrite Advisory Panel was established to consider and advise on issues arising during the rewriting of the income tax legislation, as part of New Zealand tax reform arising from the Working Party on the Reorganisation of the Income Tax Act 1976. The panel was disestablished in 2014 at the completion of the tax reform.[4]
Inland Revenue's Māori name, Te Tari Taake, means 'The Department of Tax'. Despite long vowels in Māori now being most commonly expressed with macrons over the vowel rather than double vowels, the department continues to use the double vowel due to the resemblance of the word tāke to the English word take.[5]
Service delivery
editIn 2021-22, Inland Revenue collected $100.6 billion in tax revenue, [6] which helped pay for the services that all New Zealanders benefit from such as social security and welfare, health and education. Other services included law and order, housing and community development, environmental protection, defence, transport, and heritage, culture and recreation.
In recent years, Inland Revenue has undergone business transformation activities aimed at simplifying the tax and social benefits process of receiving and paying taxes. As of 2019, these changes have resulted in a reduction of $60 million in administrative costs and an increase of $90 million in additional revenue through compliance and reduced effort for small to medium-sized businesses. [7] In 2021, further business transformation activities were undertaken, including an upgrade to myIR, their secure online service, which has made it easier for customers to manage their tax and payments online.
In 2020, Inland Revenue delivered a change to the revenue system for individuals where every taxpayer account for income tax, Working for Families, KiwiSaver, student loans and the end-to-end processing of PAYE moved into Inland Revenue’s new tax and revenue technology system.
The department administers the following social support programmes:
- Working for Families (tax credits)
- Paid Parental Leave (payment)
- Child Support (collection and payment)
- Student Loan debt (collection)
- KiwiSaver
Acts and regulations administered
editLegislation administered by Inland Revenue includes:[8]
- Cheque Duty Repeal Act 2014 [9]
- Child Support Act 1991
- Estate and Gift Duties Act 1968
- Gaming Duties Act 1971
- Goods and Services Tax Act 1985
- Income Tax Act 2007
- Stamp and Cheque Duties Act 1971
- Student Loan Scheme Act 2011[9]
- Tax Administration Act 1994
- Taxation Review Authorities Act 1994
- Unclaimed Money Act 1971
- KiwiSaver Act 2006
Criticisms
editInland Revenue has been criticised for what are seen as heavy handed tactics when forcing payment from debtors, specifically those owing tax arrears and child support payments, and for charging excessive penalties on debts which result in debtors falling into a cycle whereby they are unable to pay the growing amounts they owe. The approach of Inland Revenue has been implicated in a number of suicides and other acts of self-harm.[10][11][12]
The number of people threatening self-harm in phone calls to Inland Revenue has trended down consistently over the last three years. Between January and August 2019, 168 people contacted Inland Revenue threatening self-harm. That compares to 292 for the 2018 calendar year; 306 for 2017; and 334 for 2016.[13]
Awards
edit- At the 2022 Public Service Day Awards, two Inland Revenue employees (one posthumously) received the Public Service Commissioner's Commendation for Excellence award for their outstanding spirit of service.[14]
- In 2021, Inland Revenue were finalists at the Spirit of Service Awards for service excellence for their work investing in new technology and tools, focusing on simplifying policies and processes and introducing new ways of working to deliver better experiences for customers.[15]
- In November 2019, an Inland Revenue employee was awarded the State Services Commissioner's Commendation for Frontline Excellence for her investigation into the suspected multimillion-dollar income suppression by a chain of restaurants. This investigation led to one of the most significant prosecution cases undertaken by Inland Revenue in the past decade.[16]
- In 2019 Inland Revenue was awarded a Distinguished Service Award from Multicultural New Zealand in recognition of its support of community members in the aftermath of the Christchurch attacks.[6]
- Inland Revenue, along with The Treasury, were finalists at the Spirit of Service Awards 2019 for their partnership work to enhance tax policy through kaitiakitanga (stewardship), manaakitanga (care), ōhanga (prosperity) and whanaungatanga (relationships).[17]
- In 2019, an Inland Revenue employee was awarded the Ria McBride Public Service Management Award, sponsored by Te Kawa Mataaho Public Service Commission, which supports women to study as part of their development towards senior management positions in the Public Service.
- In 2018, the IPANZ Prime Minister's Award for Public Sector Excellence and Achieving Collective Impact was awarded to the Ministry of Education, Tertiary Education Commission, Ministry of Social Development and Inland Revenue for delivering fees-free tertiary education for the 2018 school year. The Regulatory Systems award went to the Ministry of Justice, Department of Internal Affairs, Reserve Bank of New Zealand, Financial Markets Authority, New Zealand Customs, and Inland Revenue for Anti-Money Laundering and Countering Financing Terrorism.[18]
- At the 2018 New Zealand CIO Awards, Inland Revenue were finalists in the Business Transformation through Digital and ICT category.[19]
List of ministers
editThe Minister of Revenue is the political office of minister for the department of Inland Revenue. Since November 2023, the position has been held by Simon Watts.
- Key
Liberal Reform United Labour National United United Future
No. | Name | Portrait | Term of office | Prime Minister | |||
---|---|---|---|---|---|---|---|
As Minister in Charge of Land and Income Tax Department | |||||||
1 | Arthur Myers | 28 March 1912 | 10 July 1912 | Mackenzie | |||
2 | James Allen | 10 July 1912 | 12 August 1915 | Massey | |||
3 | Joseph Ward | 12 August 1915 | 21 August 1919 | ||||
(2) | James Allen | 4 September 1919 | 28 April 1920 | ||||
4 | William Massey | 12 May 1920† | 10 May 1925 | ||||
5 | William Nosworthy | 14 May 1925 | 24 May 1926 | Bell | |||
Coates | |||||||
6 | William Downie Stewart Jr | 24 May 1926 | 10 December 1928 | ||||
(3) | Joseph Ward | 10 December 1928 | 28 May 1930 | Ward | |||
7 | George Forbes | 28 May 1930 | 22 September 1931 | Forbes | |||
(6) | William Downie Stewart Jr | 22 September 1931 | 28 January 1933 | ||||
8 | Gordon Coates | 28 January 1933 | 6 December 1935 | ||||
9 | Walter Nash | 6 December 1935 | 13 December 1949 | Savage | |||
Fraser | |||||||
10 | Charles Bowden | 13 December 1949 | 1 November 1952 | Holland | |||
As Minister in Charge of the Inland Revenue Department | |||||||
(10) | Charles Bowden | 1 November 1952 | 26 November 1954 | Holland | |||
11 | Jack Watts | 26 November 1954 | 12 December 1957 | ||||
Holyoake | |||||||
12 | Arnold Nordmeyer | 12 December 1957 | 12 December 1960 | Nash | |||
13 | Harry Lake | 12 December 1960 | 20 December 1963† | Holyoake | |||
Office not in use | |||||||
14 | Peter Wilkinson | 12 December 1975 | 8 March 1977 | Muldoon | |||
15 | Hugh Templeton | 8 March 1977 | 11 December 1981 | ||||
16 | John Falloon | 11 December 1981 | 26 July 1984 | ||||
17 | Roger Douglas | 26 July 1984 | 24 August 1987 | Lange | |||
As Minister of Revenue | |||||||
18 | Trevor de Cleene | 24 August 1987 | 15 December 1988 | Lange | |||
19 | David Caygill | 15 December 1988 | 9 February 1990 | ||||
Palmer | |||||||
20 | Peter Neilson | 9 February 1990 | 2 November 1990 | ||||
Moore | |||||||
21 | Wyatt Creech | 2 November 1990 | 29 February 1996 | Bolger | |||
22 | Peter Dunne | 29 February 1996 | 16 December 1996 | ||||
23 | Bill Birch | 16 December 1996 | 31 August 1998 | ||||
Shipley | |||||||
24 | Max Bradford | 31 August 1998 | 1 February 1999 | ||||
25 | Bill English | 1 February 1999 | 22 June 1999 | ||||
(23) | Bill Birch | 22 June 1999 | 10 December 1999 | ||||
26 | Michael Cullen | 10 December 1999 | 17 October 2005 | Clark | |||
(22) | Peter Dunne | 17 October 2005 | 7 June 2013 | ||||
Key | |||||||
27 | Todd McClay | 7 June 2013 | 14 December 2015 | ||||
28 | Michael Woodhouse | 14 December 2015 | 20 December 2016 | ||||
29 | Judith Collins | 20 December 2016 | 26 October 2017 | English | |||
30 | Stuart Nash | 26 October 2017 | 6 November 2020 | Ardern | |||
31 | David Parker | 6 November 2020 | 24 July 2023 | ||||
Hipkins | |||||||
32 | Barbara Edmonds | 24 July 2023 | 27 November 2023 | ||||
33 | Simon Watts | 27 November 2023 | Incumbent | Luxon |
See also
editReferences
edit- ^ "Annual Report 2022" (PDF). Inland Revenue Department. 2022. Retrieved 10 March 2023.
- ^ "Total Statement of departmental budgeted and actual expenses and capital expenditure". Inland Revenue. Retrieved 6 April 2023.
- ^ "Watts, Simon - New Zealand Parliament". www.parliament.nz. Retrieved 27 November 2023.
- ^ "Plain English tax panel disestablished" (Press release). 2 December 2014. Retrieved 18 February 2017.
- ^ Goldsmith, Paul (13 July 2012). "Taxes - Tax, ideology and international comparisons". Te Ara - the Encyclopedia of New Zealand. Retrieved 14 June 2013.
- ^ a b "IRD Annual Report 2022" (PDF).
- ^ "IRD Annual Report 2019" (PDF). Retrieved 10 March 2023.
- ^ "Nature and scope of IR functions from Statement of Intent 2011-14". Archived from the original on 29 March 2012. Retrieved 6 September 2011.
- ^ a b "Legislation and regulations (Who we are)". Archived from the original on 14 January 2020. Retrieved 14 January 2020.
- ^ "Self-harm threats soar for those who owe IRD". 7 October 2014.
- ^ "What's the Single Largest Cause of Bankruptcy in New Zealand?".
- ^ "Suicide concerns rise for farmers as dairy downturn takes its toll". 28 April 2016.
- ^ "TVNZ".
- ^ "Public Service Day Awards 2022".
- ^ "Spirit of Service Awards 2021".
- ^ "Public Service Day Awards 2019".
- ^ "Spirit Service Awards 2019".
- ^ "IPANZ Public Sector Excellence Awards".
- ^ "NZ CIO Awards 2018".
External links
edit- Official IRD website
- Tax Policy, Inland Revenue