Inland Revenue: A technology enabled business transformation
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1 Inland Revenue: A technology enabled business transformation Gary Baird Chief Technology Officer March 2018
2 Inland Revenue An Annual Snapshot 5500 STAFF ACROSS 26 LOCATIONS IN 17 CITIES COLLECTED $70.1 BILLION (80% OF CROWN REVENUE) 200,000 EMPLOYERS FILED 2,100,000 EMPLOYER MONTHLY SCHEDULES 7.5 MILLION CUSTOMERS PAID $4.2 BILLION $5.6 BILLION PAID TO KIWISAVER SCHEME PROVIDERS 2
3 Vision for the future revenue system To grow voluntary compliance by making it easier for people to get it right To reduce compliance costs To make Government policy changes faster and more cost effectively 3 3
4 Inland Revenue s transformation will deliver significant benefits to customers and the Crown Outcomes of transformation Reduced customer effort and cost Improved compliance levels Make Government policy changes faster and more cost effectively Improved systems resilience The high-level benefits for customers are A more efficient Inland Revenue A fundamentally different revenue system Based around customers needs Easy to understand & interact with Near real time information Digital and highly automated Systems and software do most of the work More responsive, flexible & certain for customers Future proofed to accommodate change Services delivered with others inside and outside government 4 4
5 Transformation is far more than an upgrade of technology Transformation is enabled by a combination of changes: Simplifying policy and legislative settings Making more intelligent use of information to proactively ensure customers get it right from the start Fitting revenue processes seamlessly into people s lives Creating an organisation that works together better to improve outcomes for customers Implementing a modern technology platform (START) that is digitally based and highly automated 5 5
6 Timeline for delivery (Five Major Releases) DESIGN PHASE TECHNOLOGY ENABLERS CO-EXISTENCE 1 Release1 Enable digital services, GST 2 AIM, Payday Reporting, FBT, Gaming Machine Duty, Withholding Taxes 3 Income Tax, Working for Imputation, Families 4 Social Policy (Kiwisaver, Student Loans) Where we are now 5 Social Policy (Child Support) Complete the future revenue system 6
7 What our customers will see Release 1 Release 2 Release 3 Enable Secure Digital Services April 2017 Streamline Tax April 2018 Streamline Tax April 2019 GST 2 million returns filed 250K returns filed through customers accounting services 84% digital uptake (previously 74%) $31.5 billion payments received $12.2 billion refunds paid Payday Reporting Accounting Income Method Withholding Taxes FBT Gaming Machine Duty Automatic Exchange of Information (OECD) Income Tax Imputation Taxes Working for Families Independent Earner Tax Credit 7
8 Consolidating & Simplifying The high-level benefits for customers are From To 40m lines of code Tax System 1 COTS solution 65 Channels Apps Interfaces 50 (8 patterns) 2000 Servers Storage (TB) 330 (50% cloud) 5 Data Centres 2 8 8
9 Upcoming Technology Information and Knowledge Management & Enterprise Content Management Enterprise Support Services Workplace Technology Office 365 Hardware refresh Advanced Analytics and Business Intelligence Expand Service Management Capability Cloud Services Uptake - Data Archiving & Decommissioning - Dev/Test Platforms - AWS Cloud 9 9
10 Gary s Insights & Lessons Learned 1 Take care of people 2 Simplify and don t reinvent (eg. COTS, SaaS, Cloud) 3 Truly understand your people & customers needs (design) 4 5 Shifting the digital border (XERO/MYOB) Leverage existing data the butterfly effect (straight-through) 6 Enable future change agility 10 10
11 Thanks for your time. Inland Revenue: A technology enabled business transformation
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