Inland Revenue’s Strategic and Regulatory Management of Tax System Integrity and Taxpayer Perceptions

51 Pages Posted: 17 Jan 2019

See all articles by Jeremy Beckham

Jeremy Beckham

University of Auckland - Faculty of Law

Date Written: June 27, 2018

Abstract

This article examines Inland Revenue’s strategic and regulatory management of its responsibility in s 6 of the Tax Administration Act 1994 (NZ) to protect the integrity of New Zealand’s tax system and taxpayer perceptions of that integrity. A strategic rethink that took place in 2001 first set Inland Revenue down the path of an approach to tax administration based on the principles of responsive regulation. In line with this approach, Inland Revenue introduced its compliance model that underpins tax administration and introduced a new taxpayer charter. Other changes saw Inland Revenue release its first‑ever Statement of Intent and revise some of its internal policies and procedures. This article first examines the events surrounding Inland Revenue’s reorientation in 2001 to provide a historical perspective on why the responsibility to manage taxpayer perceptions of the integrity of the tax system is so important. This article then examines the initiatives that were introduced to support the new strategic direction and considers their subsequent development. The main contention advanced in this article is that the approach taken by Inland Revenue has largely been preoccupied with compliance objectives. In comparison, it does not appear that Inland Revenue has actively sought to incorporate the management of its responsibility to protect the integrity of the tax system into tax administration at a strategic or regulatory level. This article concludes that more work is needed to incorporate integrity measures and manage taxpayer perceptions of the integrity of the tax system as an objective that should be pursued in its own right.

Suggested Citation

Beckham, Jeremy, Inland Revenue’s Strategic and Regulatory Management of Tax System Integrity and Taxpayer Perceptions (June 27, 2018). Australian Tax Forum, Vol. 33(4), 2018, Available at SSRN: https://ssrn.com/abstract=3311244

Jeremy Beckham (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

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