The Limits of the Responsive Regulation Model: What Really Defines the Relationship between the IRD and Tax Practitioners
New Zealand Journal of Taxation Law and Policy, 2009
19 Pages Posted: 10 Dec 2015
Date Written: 2009
The approach to administering the taxation laws by the New Zealand Internal Revenue Department (“IRD”) is founded on the responsive regulation model. Pursuant to the model the IRD describes its relationship with the profession as collaborative or even a partnership. The model has been borrowed from the Australian initiatives.
However there is evidence is that the partnership model has been very patchy in its application, both over time and depending upon the IRD operatives involved. Subjective attitudes and external influences appear to have a significant impact upon the nature of the relationship.
This evidence suggests that the partnership model in both New Zealand, and Australia, may be appropriately viewed as dynamic, with the relationship molded more by the environment than by managerial design.
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