Information sharing by government agencies: The effect on the integrity of the tax system

Inland Revenue (IR) in New Zealand is currently increasing its information sharing activity with other government departments and agencies. This is in line with the New Zealand governments Better Public Services programme, and will improve the quality and speed of IRs services to business and individual customers, and support other government departments in meeting their objectives. IR was aware that customers would be sensitive about how information sharing by government departments would affect their right to privacy. Therefore, to contribute to its policy development, IR researched views of the general public,businesses, cultural groups, tax agents and law groups in five studies conducted between 2010 and 2013. These studies included two multi-method studies involving quantitative surveys and qualitative interviews and three qualitative studies. This paper combines the findings from all five studies, with a particular emphasis on the three most recent studies: Public perspectives on sharing of individuals information to combat serious crime Cultural perspectives from Maori, Pasifika and Asian communities on the sharing of individuals information Businesses and key informants perspectives on the sharing of businesses information. The key findings were that: There was cautious support for cross-government information sharing, balanced with a strong desire for privacy, particularly regarding income and debt information. Participants perceptions regarding the integrity of the tax system were most positively influenced by scenarios of IR being involved in information sharing targeting. Protecting public monies (especially from tax and benefit fraud). Ensuring customers receive their correct entitlements. Making it easier for customers to deal with their tax matters. The main concerns were regarding the potential misuse of information by government agencies, the accuracy of the information, and the security of government agencies information handling processes. There was a desire for transparency of information sharing processes, and customers to be asked for consent for information sharing where feasible. IR will use these findings in developing its policies and processes for increased information sharing with other government agencies, paying particular attention to the areas of risk to public perceptions of the integrity of the tax system.