Statement of Intent 2011-2014 - New Zealand Customs Service

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OUTCOME: REVENUEThe rate of collection of due Crown revenue is maintained for New ZealandCustoms collects 15 percent ofCrown revenue from import duty,excise equivalent duty, goods andservices tax at the border, and exciseduty within New Zealand. Collectingdue Crown revenue effectively andefficiently is critical to supportingthe Government to meet its goals forNew Zealanders. 24Customs supports the integrityof the tax system by maintainingcompliance through fair and effectiveadministration that seeks to increasevoluntary compliance. This recognisesthat the majority of traders andtravellers aim to meet their revenueobligations on time. We seek toprovide credit and debt managementservices that are efficient, effective,and appropriate to the economicconditions facing New Zealandtraders. We discourage deliberate noncompliancethrough active monitoringand enforcement.IMPACTS AND OBJECTIVES WE SEEKTO ACHIEVE 26Customs seeks to achieve thefollowing impact: maintained andtimely collection of due Crownrevenue efficiently and effectively.This impact is assumed on the basisthat New Zealand’s economy willcontinue to improve despite thefragile global economic recovery;and that the forecast Crown revenuefor Customs to collect is consistentwith the Government’s economicand fiscal policies.Our compliance approach helpsCustoms to achieve three furtherimpacts: maintained high levelsof voluntary compliance; reducedintervention with compliantclients; and reduced risk fromnon-compliance; and deliver onthe Government’s aim to strengthenthe economy by building strongerGovernment accounts.Customs will continue to monitorand actively manage deliberate noncompliance,including fraud. This mayinvolve imposing sanctions on thesmall minority who defer paymentwithout formal arrangements, orevade their revenue obligations.We expect to continue to manage therisks of some traders not being ableto meet their revenue obligations ontime, as the slow global economicrecovery continues to impactnegatively on some sectors withinNew Zealand. We will thereforecontinue to manage our collectionand debt management services inappropriately responsive ways that donot place otherwise viable businessesat risk.HOW WE WILL DEMONSTRATESUCCESSWe will demonstrate performance forthe Revenue outcome as follows:The Revenue outcome is deliveredthrough services across three of thesix output classes for Vote Customs. 25These include: processing revenueowed to the Crown, and leviescollected for other agencies, suchas the Heavy Engineering ResearchAssociation (HERA); providingrevenue assurance through revenueaudits, managing credit and debt; andproviding policy advice on Crownrevenue, collection, and management.WHAT WE WILL DO TO ACHIEVETHESE IMPACTS AND OBJECTIVESFrom 2011/12, Customs will continueto promote high levels of voluntarycompliance by providing tradersand travellers with easy access toinformation about their revenueobligations that is timely and easy tofollow. Our declaration systems andprocesses will continue to be efficientand easy for traders to use. We willalso continue to work with industrysectors and individual traders on theirrevenue obligations, and the Crownrevenue liability relating to excise oninternational and domestic trade.24 Crown revenue supports other economic and social outcomes. Excise duties are levied for a number of reasons, including duties to reduce demand for goods, such as cigarettescontributing to social costs. Customs tariffs are collected on a small number of commodities to protect vulnerable industries in New Zealand from competing producers in lowercosteconomies.25 Revenue collection services; Clearance and enforcement services relating to goods; and Policy advice and international services.26 An impact is the direct societal, economic, or environmental change or effect made to an outcome by a specified set of outputs and/or actions.26 Statement of Intent 2011–2014
Impacts for the Revenue outcomeREVENUEIMPACT INDICATOR MEASURE AND TARGET BASELINEMaintained andtimely collection ofdue Crown revenueRevenue that is invoicedis collectedPercentage of revenue invoiced that is collectedis no less than 2010/11 levelsBaseline to be establishedin 2010/11Revenue that is not paidis followed upPercentage of total revenue collected that isdebt write-off is no more than 2008/09 levels< 0.02% in 2008/09Maintained highlevels of voluntarycomplianceRevenue compliancelevelsRisk-based compliance and assurance processesconfirm high levels of compliance by generatingassessed revenue (excluding penalties) that isless than 1% of total revenue collected0.49% in 2008/09Verification of compliance in a random sampleof import and excise transaction indicates highlevels of complianceBaseline to be establishedin 2010/11Reduced interventionwith compliant clientsRevenue is paid by thedue dateMaintained percentage of revenue that iscollected by the due date99.7%Reduced risk fromnon-complianceAdditional revenue foundfrom non-compliantentriesTotal revenue found in non-compliant entriesBaseline to be establishedin 2011/12Measure of cost-effectiveness for the Revenue outcomeDIMENSION MEASURE ESTIMATED BASELINERevenueRatio of the value of aged debt collected to the cost ofrunning the National Credit Control Unit8:1 in 2008/09New Zealand Customs Service 27
Page 1: B.24 SOI (2011)NEW ZEALANDCUSTOMS S
Page 5 and 6: CONTENTSMINISTER’S FOREWORD .....
Page 7 and 8: MINISTER’S STATEMENT OF RESPONSIB
Page 9 and 10: COMPTROLLER’S STATEMENT OF RESPON
Page 11 and 12: STRATEGIC DIRECTIONTHE GOVERNMENT
Page 13 and 14: » Protection — New Zealand ispro
Page 15 and 16: order and revenue in order that New
Page 17 and 18: New Zealand expects continuedchalle
Page 19 and 20: OUTCOME: PROTECTIONNew Zealand is m
Page 21 and 22: WHAT WE WILL DO TO ACHIEVETHESE IMP
Page 23 and 24: OUTCOME: TRADENew Zealand’s trade
Page 25 and 26: our trade presents a low risk to th
Page 27 and 28: OUTCOME: TRAVELTravel to and from N
Page 29: Travel outcome measuresThese indica
Page 33 and 34: development projects during2011/12,
Page 35 and 36: Customs will continue to engage wit
Page 37 and 38: CAPITAL AND ASSETMANAGEMENT INTENTI

Statement of Intent 2011-2014 - New Zealand Customs Service

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