Business Transformation on Fast track

Revenue Minister Todd McClay today welcomed the announcement of Fast Enterprises as Inland Revenue’s preferred software partner to support a modernised, simplified tax system for New Zealand.

Mr McClay said that a modernised tax administration system, enabled by the new software, would significantly boost the Government’s ability to support flourishing businesses in New Zealand and make tax compliance less costly and time consuming for all New Zealanders.

“Key individuals from Fast Enterprises were also instrumental in building our original software, FIRST, and that system has performed well for more than twenty five years.

“This will also bring the time frame down from ten years to under eight and see the cost lower to near the bottom end of the forecast - at around $1.3 billion. I will be working with Inland Revenue to find further efficiencies and expect the cost could be as low as $1 billion,” says Mr McClay.

“An increasing number of New Zealand companies are also involved in critical components of the transformation process.

“These include Tenzing’s contract for data profiling and DeloitteAsparona, which has been contracted to replace the FIRST integration layer and Assurity, which provides testing services.

“In addition Xero, MYOB and other software providers are working with Inland Revenue to simplify processes for small businesses.

“The sheer scale and importance of this programme means we will source expertise both locally and internationally,” says Mr McClay.

Mr McClay says New Zealand’s tax system is well regarded internationally and plays an important role in supporting the kind of stability, certainty and predictability needed to maintain and attract good investment levels in the economy. This work will improve our reputation in that area.

“Taxes pay for a wide range of vital public services that give us a quality of life envied elsewhere. So we need a tax system that does the best it can to collect the more revenue to improve the lives of all New Zealanders.”

Mr McClay says the Government will continue to consult with a wide range of people and organisations on the overall direction of the tax administration modernisation programme.

“We recently launched the first two of a series of consultations with the documents, Making Tax Simpler – a Government green paper on tax administration and Better Digital Services. More consultation papers are due later this year.

“So as work progresses on designing the new system we are constantly talking to those who will work with and use it to make sure we get the best results.

“The changes are not just to IT systems, but to policy, processes and the way people interact with Inland Revenue and well positions New Zealand to continue to be a world leader in tax administration,” says Mr McClay.