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Inland Revenue releases adverse events research

MEDIA RELEASE

4 February 2013

Inland Revenue releases adverse events research

The Christchurch rebuild depends on a well-working tax system, so Inland Revenue has undertaken research to examine the impact of the earthquakes on small and medium businesses.

Commissioner Naomi Ferguson said the research will help Inland Revenue improve its ability to help small and medium businesses (SMEs) meet their tax obligations. More than 1600 businesses and 100 tax agents were surveyed between April and July 2012.

“The findings showed that businesses are spread across different stages of recovery from ‘not trading’ to ‘fully recovered’.”

“Despite some very tough conditions for many businesses and individuals in the last two years, 90 per cent of those surveyed accepted responsibility for paying tax.”

Ms Ferguson said this approach would help Christchurch recover from the earthquakes.

“We recognise there is still work to be done to support businesses as they recover from the earthquakes.

“While this is a concern, it is important to recognise that the local business environment remains tough, and that we continue to do all we can to help customers file their returns and get back on track,” Ms Ferguson said.

“Anyone who is having difficulty meeting their obligations should talk to us as soon as possible.”

Tax agents and SMEs were generally positive about the assistance and support that Inland Revenue offered, which included waiving of penalties, payment arrangements and extensions of time.

Inland Revenue’s research will follow businesses as they recover from the earthquakes. The learning from the research will help Inland Revenue develop response strategies, and will help the government develop a collective view of the key issues facing Canterbury.

Exploring the impact of adverse events on SME tax compliance behaviour is available on Inland Revenue’s website at: http://www.ird.govt.nz/news-updates/campaign-r-and-e-adverse-effects-report.html?id=homepage

ENDS

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