Question of T&R Minister March 2015

I asked the T&R Minister a question following his quarterly update on the States’ financial position in March 2015. The signs were very positive at the time, which was reflected in the Minister’s speech. Contrast this to the budget 6 months later where the outlook suddenly appeared to have worsened, with less income tax receipts than were expected. My question back in March and the reply from the Minister are interesting in hindsight.

Sir, previously we have heard about problems in the Income Tax Office regarding back logs in returns. I was wondering whether the Minister could say to what extent he believes improvements at the Tax Office have contributed to the increase in income?

Sir, it is a fair question. However, based on our previous work in this area, of course the vast bulk of our revenues are collected through the ETI system and through interim assessments, and therefore, if you like, the cash flow has not been significantly affected by the problems that were experienced in the Income Tax Office last year. So no detailed analysis has been undertaken, but clearly it is a positive that the administration of Income Tax has improved and will continue to improve this year, I very much hope, sir.

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