Table: Summary of analysis Impacts Meets objectives Economic / Option Net impact a, b, c, or d? Administrative impact Compliance impact Fairness revenue impact 1. Inland Revenue Meets (d). None Inland Revenue must obtain Employers must provide of defaulters to be Does not address the obtains contact Partially meets valid address details of address details for informed is preserved problem definition and details for the (c) but not (a) or defaulters, which slows the defaulters meets only one of the defaulters from their (b). debt recovery process four objectives employers (status quo) 2. Inland Revenue Meets (c). None Inland Revenue must Employers may have to Defaulters are unaware of Does not address the issues notice to the Partially meets manually over-ride its deal with employee intention to deduct problem definition and last known (b). system to issue the notices, complaints reduction fully meets only one of “invalid” address of defaulters Does not meet deal with returned mail and in pay the four objectives (a) or (d). handle additional complaints to call centres. 3. Inland Revenue Meets (d). None Inland Revenue must Employers have to pass on Right of defaulters to be Addresses the problem issues notice to the Partially manually over-ride its notice to defaulters informed is preserved definition but fully meets employers for (c). system to issue the notices only one of the four passing on to the Does not meet objectives defaulters (a) or (b). 4. Inland Revenue (a) and (c). None An administrative saving Employers may have to Defaulters are unaware of Addresses the problem dispenses with Partially meets compared with the status deal with employee intention to deduct definition and fully meets notices to the (b). quo. complaints about reduction two of the four objectives defaulters Does not meet in pay (preferred option) (d).
Table: Summary of analysis Option Meets objectives a, b, c, or d? Impacts Net impact Economic / revenue impact Administrative impact Compliance impact Fairness 1. Inland Revenue obtains contact details for the defaulters from their employers (status quo) Meets (d). Partially meets (c) but not (a) or (b). None Inland Revenue must obtain valid address details of defaulters, which slows the debt recovery process Employers must provide address details for defaulters of defaulters to be informed is preserved Does not address the problem definition and meets only one of the four objectives 2. Inland Revenue issues notice to the last known “invalid” address of defaulters Meets (c). Partially meets (b). Does not meet (a) or (d). None Inland Revenue must manually over-ride its system to issue the notices, deal with returned mail and handle additional complaints to call centres. Employers may have to deal with employee complaints reduction in pay Defaulters are unaware of intention to deduct Does not address the problem definition and fully meets only one of the four objectives 3. Inland Revenue issues notice to the employers for passing on to the defaulters Meets (d). Partially (c). Does not meet (a) or (b). None Inland Revenue must manually over-ride its system to issue the notices Employers have to pass on notice to defaulters Right of defaulters to be informed is preserved Addresses the problem definition but fully meets only one of the four objectives 4. Inland Revenue dispenses with notices to the defaulters (preferred option) (a) and (c). Partially meets (b). Does not meet (d). None An administrative saving compared with the status quo. Employers may have to deal with employee complaints about reduction in pay Defaulters are unaware of intention to deduct Addresses the problem definition and fully meets two of the four objectives
2015-ris-tfpsom-bill-4.docx