Transforming New Zealand’s revenue system CXO Disrupt 2016 Greg James, Deputy Commissioner Change

A complete end-to-end transformation involving customers, our people, processes, Policy and replacing technology

Three key objectives Grow voluntary compliance by making it easier for people to get it right Reduce compliance costs Make Government policy changes faster and more cost effectively

Making more intelligent use of information Fitting tax seamlessly into people’s lives Linking our systems across government and the private sector Three areas of focus

What the future looks like for customers Tax will fit seamlessly into customers’ broader lives, rather than a separate compliance exercise Reduced compliance costs and effort for business Better access and control of their tax affairs using self-service channels

YOUTH TO YOUNG ADULT CUSTOMER JOURNEY EXAMPLE OF POSITIVE ENGAGEMENT

New technologies are enabling opportunities to simplify the tax system and reduce complexity Taxpayers’ needs will be better understood and served through better use of data and information sharing Already seeing positive uptake of eGST, voice biometrics, filing through accounting software Client service relationships will change eg. tax professionals and their clients Easier to get tax right leads to increased levels of compliance Disruption of the tax system

New COTS technologies require a different support model and skills Customer self-service channels and straight-through processing reduce low level transactional processing Reskilling and upskilling our people to support new functions e.g. analytics, new technologies, working with third parties in a wider eco-system Internal disruption at Inland Revenue

Fitting tax into how businesses operate Partnering with accounting software developers Filing GST through accounting software Successful trial with 2,000 businesses 83% of participants surveyed said the service is “a lot easier than the old process” Now available to all MYOB and Xero customers who file GST

Configuring new GenTax software to NZ tax rules Solution Delivery for Stage 1 go live early in 2017 Comprehensive customer and staff change management Very focused on customer benefits - not just for IR’s benefit Government consultation Making Tax Simpler continues What’s happening in the programme now

Business Tax package out for consultation Pre-Budget announcement of 16 new initiatives to: Reduce uncertainty and compliance effort for business Protect businesses from those who have tax debts Make penalties fairer for those in debt Address those not paying tax

Key highlights Accounting Income Method option to pay Provisional Tax as you earn Removal of 1% incremental late payment penalty for new debt Changes to use of money interest Withholding rate changes for contractors and labour hire firms Information sharing with third parties to protect other businesses

Your feedback – will they work in practice? Online forum for feedback on Accounting Income Method Technical issues paper outlines all initiatives and impacts Submissions open until 30 May 2016

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