Story image

IRD to spend over $1 billion on a system that makes it easier for Kiwis to pay tax

26 Mar 2018

Kiwis collectively pay around $70 billion in tax each year to the Inland Revenue Department (IRD). The Government then uses these funds to provide services and support to New Zealanders.

So, it's obviously crucial IRD’s system for collecting these billions of dollars is efficient and effective. The IRD is setting out to modernise its systems, spending millions of dollars on its Business Transformation programme, an initiative designed to create a “modern revenue system” that will make it easier for taxpayers to pay their taxes.

The programme is expected to cost between $1.5 and $1.69 billion, with most of the costs coming from purchasing goods and services.

The new system should feature more reliable information technology, be less costly to run than its current systems, and be capable of accommodating government policy changes in a timely and cost-effective way.

The Auditor-General presented a report to the House of Representatives last week regarding the programme, in which deputy controller and auditor-general, Greg Schollum states “Inland Revenue has a clear vision and purpose for its new approach to procurement.”

Schollum also says that although changes have been implemented only recently, there are early signs that these changes are likely to improve supplier performance and outcomes for IRD.

However, he also warns:

“Inland Revenue still needs to make improvements to some of its processes around compliance and record-keeping to ensure that it always follows a robust, fair, and consistent approach to procurement.”

“In particular, Inland Revenue needs to strengthen the way it applies and records quality controls, and how it keeps procurement and contract records. It also needs to put adequate probity assurance arrangements in place.”

Regarding procurement, Schollum explains the IRD changed its approach following an audit by the Auditor-General.

The changes saw the IRD bring in procurement specialists with appropriate skills and resources, a change Schollum says was “well thought out and caused minimal disruption.”

The programme is expected to be completed by 2021.

Why Aussie companies are struggling with data
The top culprits in poor data quality in Oz are human error, different data sources, lack of comms, inadequate strategy, and too much information.
Machine learning is a tool and the bad guys are using it
KPMG NZ’s CIO and ESET’s CTO spoke at a recent cybersecurity conference about how machine learning and data analytics are not to be feared, but used.
Pure Storage expands enterprise data management solutions
It has integrated StorReduce technologies for a cloud-native back up platform, and expanded its data fabric solution for cloud-based applications.
Seagate: Data trends, opportunities, and challenges at the edge
The development of edge technology and the rise of big data have brought many opportunities for data infrastructure companies to the fore.
TIBCO announces API management solution with cloud-native design
The platform aims to deliver key API management capabilities for enterprises adopting cloud-native development and deployment practices.
How blockchain could help stop video piracy in its tracks
An Australian video tech firm has successfully tested a blockchain trial that could end up being a welcome relief for video creators and the fight against video piracy.
How to gain an edge with data analytics in 2019
"With greater reliance on AI and machine learning comes human hesitation about the trustworthiness of model-driven recommendations."
Veeam achieves backup certification for SAP HANA
"SAP HANA enterprise customers can take advantage of Veeam’s backup solution for their performance-sensitive SAP environments."