12.2 33%2c34%2c35%20Investigations%20%26%20Disputes%20%28final%29

12.2 33%2c34%2c35%20Investigations%20%26%20Disputes%20%28final%29

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ACIS 254 3 AND 4 JUNE 2009 LECTURES 33, 34 AND 35: INVESTIGATIONS, DISPUTE RESOLUTION & RECORD KEEPING Reading: New Zealand Taxation Chapter 20, paragraphs 20.1-20.2, 20.2.3-20.2.5, 20.3.4, 20.5.1- 20.5.8, 20.6.6; MTG Chapter 1, paras 1-512, 1-560 - 1-635 and Chapter 4, paragraphs 4-010 to 4- 275. TAX ADMINISTRATION: Tax administration covers a broad range of activities that regulate the relationship between the state and the individual. It is intensely procedural and involves the application of accepted forms and documents, often within tight deadlines. The principal statute administering this relationship is the Tax Administration Act 1994 (TAA 1994) . Integrity of the Tax System Every Minister and every officer of any government agency who has responsibility under any Act for the collection of taxes and other functions under the Inland Revenue Acts must use their best endeavours to protect the integrity of the tax system. Integrity is defined to include (but not limited to): Taxpayer perceptions of that integrity; The rights of taxpayers to have their liability determined fairly, impartially, and according to the law, and to have their affairs kept confidential and treated with no greater or lesser favour than those of other taxpayers; The responsibilities of taxpayers to comply with the law; and The responsibilities of those administering the law to do so fairly, impartially, and according to the law, and to maintain the confidentiality of the affairs of taxpayers [s 6 TAA 1994]. Care and Management of Taxes Section 6A (2) TAA 1994 charges the Commissioner with the ‘care and management of the taxes covered by the Inland Revenue Acts 1 ’. The managerial discretion contained in this section allows the Commissioner to meet his duty to ‘collect over time the highest net revenue that is practicable within the law’, having regard to a number of factors listed in s 6A (3) TAA 1994. These factors are: (a) The resources available to the Commissioner; and (b) The importance of promoting compliance, especially voluntary compliance, by all taxpayers with the Inland Revenue Acts; and (c) The compliance costs incurred by taxpayers. INVESTIGATIONS: Audits 1 Inland Revenue Acts include the Goods and Services Tax Act 1985, Estate and Gift Duties Act 1968, Income Tax Act 2007, Tax Administration Act 1994 and several other Acts.
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Audits of tax records are an important element of the Department’s strategy to encourage voluntary compliance. Auditing is a specialised aspect of the Department’s administration of the tax system. The taxpayer audit programme’s purpose is to detect non-compliance and deter future non- compliance. This is achieved by: having a presence in all sectors; targeting risk areas; using a combination of audit and other methods, such as education; giving non-compliers the information they need to be able to comply; penalising non-compliance; assisting in the collection of assessed tax; and identifying opportunities for legislative, policy and administrative improvements.
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This note was uploaded on 12/23/2009 for the course BCOM ACIS 254 taught by Professor Alistairhodson during the Spring '09 term at Canterbury.

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12.2 33%2c34%2c35%20Investigations%20%26%20Disputes%20%28final%29

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