New Commissioner has tough job ahead

New Commissioner has tough job ahead

The Institute of Chartered Accountants welcomes Bob Russell to his new role of Commissioner of Inland Revenue.

Institute chief executive Garry Muriwai says Mr Russell has his work cut out for him. "One of the largest challenges he will face is helping set strategic direction for the tax system. The OECD recently pointed out that direction was lacking."

"Under David Butler Inland Revenue has made significant improvements in its service delivery in recent years, but it still has a long way to go. We're particularly concerned about use of money interest charges and penalty regimes that undermine voluntary compliance."

The Institute has also expressed concern at the increasing use of Inland Revenue to deliver social services.

"The tax system is best kept simple; using it for social service delivery prevents that," Mr Muriwai said.

"The Institute supports taxation laws and practices that impose the lowest tax burden in an effective, efficient and fair manner. Using the tax system as a social service delivery tool risks undermining the fundamentals of a good system."

"Mr Russell has a lot of work to do, and we look forward to working with him," Mr Muriwai said.

ENDS

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