Minister: IRD can handle huge workload

The Inland Revenue Department’s $1.7 billion Business Transformation programme shouldn’t slow down the reforms set out in the Government’s 100-day plan, Revenue Minister Stuart Nash says.

Deloitte’s national technical director for tax, Robyn Walker, warned last month that the department would have a lot on its plate to facilitate the Government’s families package, changes to student loans and the minimum wage.

All would affect the social policy systems managed by the department, she said.

Nash has yet to release the briefing document he will have received from Inland Revenue as its incoming minister. But he said he had not been told the Business Transformation (BT) project was behind schedule in any major way.

‘‘A lot of the changes the Labour-led Government has promised in the first 100 days are dependent upon getting this right with the tax system,’’ he said.

‘‘Working for Families, oneyear free post-secondary education, the ‘winter warm-up’ – all these impact on the tax system. The clear message we have been given is IRD can deliver on the promises.’’

"What we are talking about here is a massive programme." Revenue Minister Stuart Nash

Public Service Association national secretary Erin Polaczuk said in September that the union was not surprised by an admission from Inland Revenue in June that the Business Transformation (BT) programme had fallen slightly behind schedule.

The union has clashed with the department over its plans to change the job descriptions of more than 4000 staff and to ask 860 of them to apply for new positions.

Nash said Inland Revenue Commissioner Naomi Ferguson had been open and honest about the BT project during previous select committee briefings and in weekly meetings.

‘‘At this stage I am very happy with the way [Inland Revenue] is handling this project,’’ he said.

‘‘What we are talking about here is a massive programme – by far the largest programme to be undertaken by the state sector, probably ever to be honest. So we do have an obligation to make sure we get this right.

‘‘If we put off any changes in the tax system until BT was completely rolled out, we’d be waiting about eight years.’’

John Cuthbertson, New Zealand tax leader for Chartered Accountants Australia and New Zealand, said accountants were saying that, by now, Inland Revenue should have its staff trained and be offering online training to taxpayers and tax agents.

Most of the accountants it surveyed also wanted face-to-face training before the new system went live.

‘‘The clock is ticking on Business Transformation,’’ Cuthbertson said.