Options Fairness and equity Efficiency of compliance Sustainability of tax system Revenue impact and administration 1. Retain the status quo Not met Not met Not met No impact Non-compliant businesses are Compliant businesses can Taxpayers in significant tax able to continue trading while face high costs due to poor debt can choose to isolate it compliant businesses bear the information on tax debt. from other obligations while it risk. grows, or until the business Enforcement agencies and collapses. Inland Revenue have some inefficiency in administration in of habitually compliant businesses and directors. 2. Share significant tax debt Met Met Met Potentially positive information with credit reporting agencies Disclosure will only take The cost of business Taxpayers who fail to address Compliant businesses will be place when it is a generally is reduced due to significant debt will not be less vulnerable to the adverse proportionate response to the better information supporting able to use tax secrecy laws to effects of businesses risk represented by taxpayer better decision making. hide this debt and undue collapsing. debt to the business risk to compliant taxpayers. Also potentially positive as a community. Compliant result of an additional participants can operate with incentive to debt. less risk due to more information. 3. significant tax debt Not met Not met Partially met Potentially positive information with general public Affected taxpayers will be Potentially inefficient in terms While taxpayers would not be Compliant businesses will be exposed to an inappropriate of both compliance and able to hide significant debt less vulnerable to adverse level of risk, with fewer administration costs because using secrecy rules, the risk of effects of other businesses safeguards, as a result of of high risk of inappropriate inappropriate uses of their collapsing. use of information. information may be
Options Fairness and equity Efficiency of compliance and administration Sustainability of tax system Revenue impact 1. Retain the status quo Not met Non-compliant businesses are able to continue trading while compliant businesses bear the risk. Not met Compliant businesses can face high costs due to poor information on tax debt. Enforcement agencies and Inland Revenue have some inefficiency in administration in of habitually businesses and directors. Not met Taxpayers in significant tax debt can choose to isolate it from other obligations while it grows, or until the business collapses. No impact 2. Share significant tax debt information with credit reporting agencies Met Disclosure will only take place when it is a proportionate response to the risk represented by taxpayer debt to the business community. Compliant participants can operate with less risk due to more information. Met The cost of business generally is reduced due to better information supporting better decision making. Met Taxpayers who fail to address significant debt will not be able to use tax secrecy laws to hide this debt and undue risk to compliant taxpayers. Potentially positive Compliant businesses will be less vulnerable to the adverse effects of businesses collapsing. Also potentially positive as a result of an additional incentive to debt. 3. significant tax debt information with general public Not met Affected taxpayers will be exposed to an inappropriate level of risk, with fewer safeguards, as a result of Not met Potentially inefficient in terms of both compliance and administration costs because of high risk of inappropriate use of information. Partially met While taxpayers would not be able to hide significant debt using secrecy rules, the risk of inappropriate uses of their information may be Potentially positive Compliant businesses will be less vulnerable to adverse effects of other businesses collapsing. compliant
2016-ris-bteirm-bill-4.docx