Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Unisys in whopper IRD contact worth up to $130mln

Unisys in whopper IRD contact worth up to $130mln

By Paul McBeth

Nov. 22 (BusinessDesk) - Unisys New Zealand, the global information technology group, stands to earn as much as $130 million from its eight-year contract to supply mainframe services to the Inland Revenue Department.

The contract to supply the tax department with mainframe hardware, software and operations services was awarded in June, and is worth between $80 million and $130 million, according to a notice published on the government electronic tenders service website. The contract started last month, and is scheduled to end in June 2021.

“The contract value range covers the minimum expected spend under the initial contract through to the maximum cost likely if the contract was extended and/or estimated data processing volumes were higher than estimated,” IRD said in an emailed statement to BusinessDesk.

The deal will swell Unisys’s annual revenue in New Zealand by at least 12 percent, with the local unit reporting an annual profit of $9.8 million on sales of $85.7 million in calendar 2012, according to financial statements lodged with the Companies Office.

The tax department is in the midst of overhauling the way it operates, including replacing ageing technology to protect its ability to collect tax, and could cost as much as $1.5 billion over 10 years.

The existing FIRST system processes more than 5.5 million transactions a day, and will deal typically deal with 8 million payments and as many tax returns in a year. The Unisys deal is not to replace FIRST, but to maintain and operate current tax collection systems.

Among the reasons FIRST’s become stretched over the past two decades is that add-ons to the system to deal with government initiatives such as Working for Families tax credits, student loans, and KiwiSaver, have created complexity.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news