In search of information - A comparison of New Zealand and Australian Access Powers

Abstract

The effective operation of any taxing regime depends ultimately upon the revenue authority being able to obtain timely and reliable information about a taxpayer’s relevant activities (both domestically and, increasingly offshore). The most detailed substantive provisions, whether they be income tax, GST, or other regimes, are of little use unless the authorities can obtain the information needed to establish (or at least approximate) a taxpayer’s liability. At the same time, the increased threat to confidentiality posed by to new technologies utilised by revenue authorities means it is even more important to ensure that such access powers provide adequate safeguards for taxpayers. The proximity of Australia and New Zealand, both geographically and otherwise, make it informative to compare the way they have approached a common issue – obtaining crucial information from sometimes reluctant taxpayers. The powers available to Australian and New Zealand tax officers to seek out and directly access information share a number of similarities – in part because New Zealand incorporated some features of the former Australian access power (s 263 Income Tax Assessment Act 1936) into its own access provision in s 16 of the Tax Administration Act 1994. However, there are also some interesting and significant differences. This paper explores and analyses these similarities and differences, highlighting areas where elements from one system or the other could be adopted across the Tasman (or more widely) in order to improve the operation and coherence of access powers.