Consulting firm Accenture has been selected by the New Zealand tax collector Inland Revenue as its preferred partner for the first stage of the overhauling programme of its IT: the redesign of its digital capabilities. The complete transformation programme is expected to cost Inland Revenue $1.5 billion.
Inland Revenue, formerly known as Inland Revenue Department (IRD), is the government department in New Zealand responsible for the collection of more than 80% of the Crown's revenues, and falls under the portfolio of the Minister of Revenue.
To protect its ability to collect tax, Inland Revenue currently is overhauling its IT operations. This includes the replacement of its ageing technology, and could cost $1.5 billion over 10 years. The process will be a four-stage programme, involving an upgrade of digital services, followed by the streamlining of how income and business tax is paid, followed by a more efficient social policy, and concluded by the delivery of a more flexible and efficient revenue collection service. “Our business transformation programme will reduce compliance, administration time and costs, deliver better services for our customers and make it easier for government to implement policy,” says Greg James, Deputy Commissioner at Inland Revenue.
To assist it with digital redesign, Inland Revenue has selected consulting firm Accenture as its partner for the first stage; the upgrade of its digital services. The digital redesign involves the retirement of ‘First’, Inland Revenue’s 24-year-old computer system, and the execution of wide-ranging reforms, such as the simplification of provisional tax, and the shift to more online tax processes. “Throughout the procurement process, Accenture clearly demonstrated it had the right capabilities, capacity, and experience to assist Inland Revenue,” comments Inland Revenue commissioner, Naomi Ferguson, on the choice for Accenture. “Accenture’s experience and knowledge will make an important contribution to the success of the business transformation plan,” adds James.
The financial details of the contract have not been disclosed, as Inland Revenue and Accenture are still in the midst of negotiations, which are expected to be completed after the Cabinet has considered the “transformation design business case” of the Department.