Directions for Tax Administration: Two Recent Reports
| Date | 01 September 1994 |
| DOI | 10.22145/flr.22.3.4 |
| Published date | 01 September 1994 |
| Author | Sir Ivor Richardson |
| Subject Matter | Article |
DIRECTIONS FOR TAX ADMINISTRATION: TWO RECENT
REPORTS
The
Right
Hon Sir Ivor Richardson*
The effectiveness of the tax system is crucial to the funding of government. The tax
administration is given exceptional powers to enable it to enforce tax laws
and
thus
achieve revenue outcomes acceptable to government. The performance of the tax
administration affects the efficiency of the national economy. But
though
it
is crucial to
the functioning of government
and
the economy
and
though it raises major questions
as to the application of public law values, tax administration
has
not
been
a major field
of
study
for lawyers. However,
that
may
be
changing and, co-incidentally, substantial
governmental reviews of tax administration
in
Australia
and
New
Zealand
have
recently
been
published.! For ease of reference they will
be
referred
to
as the
Australian Report
and
the
New
Zealand Report respectively.
The
two
reports provide a convenient base from which to discuss key features of
future tax administration
in
our
two countries. Unless otherwise stated all
data
are
taken directly from these reports as is
much
of the expression of the reasoning. After
quickly sketching the background to tax administration
and
the special features of tax
collecting today, this
paper
discusses major issues of tax administration for the future.
There is particular emphasis
on
the roles of the Commissioner
and
Chief Executive,2
the relationship
with
the relevant Minister, tax policy development
and
legislative
drafting, adjudication of tax liability
and
tax dispute resolution,
and
structural
arrangements including sub-contracting options for delivery
and
social policy
functions.
1
2
Judge of the Court of Appeal of
New
Zealand
and
chair
of
the Organisational Review
of
the
Inland Revenue Department (1993-1994).
Commonwealth Parliament Joint Committee of Public Accounts,
An
Assessment
of
Tax
(Report
No
326, November 1993);
New
Zealand, Organisational Review Committee,
Organisational Review
of
the Inland Revenue Department (Report to the Minister
of
Revenue
and
the
Minister of Finance, March 1994). The
New
Zealand Report
has
been
approved
by
the Government
and
is
in
the process of implementation. The Australian Government is
in
the process of implementing some of the recommendations
of
the Australian Report. A
summary
of the recommendations of the Australian Report can
be
found
at
xxiv to xlii
of
the Report. For the New Zealand Report the
summary
recommendations
can
be
found
at
11
to
22
of
the
Report.
In
New
Zealand there is
both
a Commissioner
of
Inland Revenue
under
the
Inland
Revenue Act 1974
and
a Chief Executive
of
the Department of Inland Revenue
under
the
State Sector Act 1988. Currently
both
roles are performed
by
the one person.
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