Reviewing the rules in the Tax Administration Act, which has been the focus of this consultation, in order to see whether change is needed to the rules to facilitate a quicker more efficient tax administration requires a look at not only the role of the tax systemâ€™s key actors (the Commissioner of Inland Revenue, taxpayers and agents) and the way in which Inland Revenue collects and uses tax information (which underpins the roles of the three actors); but also the wider network of tax administration rules. Â
There are several areas in this network that are not covered by this consultation which will need further consideration as the changes announced in the various Making Tax Simpler consultations are progressed.Â
- the advice and disputes procedures,
- the application of the time bar (which refers to the period of time in which Inland Revenue can amend assessments once they have been filed by the taxpayer),
- the requirements around record-keeping, and
- the future compliance and penalties approach.Â
In all of these areas further analysis will form part of future consultation once key features of the modernised tax administration have been fully developed in other areas (for example simplification for individuals, businesses or on social policy). However the Government would be interested in specific feedback on the operation of the advice and disputes procedures and the application of the time bar.