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IT system revamp for the IRD

IT system revamp for the IRD

The IRD’s current IT system was developed back in the 1990s, before Microsoft Windows and smart phones. Over time the system has been modified to cater for various Government initiatives such as student loans and working for families. It is generally accepted that the system is now unable to readily cope with further change.

An overhaul of the system is planned and is expected to cost $1.5b over a 10 year period. Arguably the upgrade is well overdue with recently released IRD papers revealing that half of the IRD’s data entry staff spend their time correcting data entries in the system.

The upgrade appears to be in motion with a recent speech by the Minister of Revenue setting out the IRD’s approach to the transformation. Of interest is that the overhaul may involve more than just the IT system. The Minister has indicated that NZ’s tax administration process is also in need of change by introducing new processes to meet the changing needs of businesses and individuals.

A sign of the changing times can be seen in the form of a recent competition where the IRD asked for input in the design of an IRD App. The competition aimed to develop an App that makes interactions with the IRD easier, improves information sharing and allows for greater self-management by taxpayers.

Hopefully a more efficient, modern system for both the IRD and its customers is on the horizon and we don’t end up with Novopay v2.

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