hmmm so many of the problems date back to Labour’s time in govt and when Labour turned the tax system into a welfare system. And now it is National’s fault…

I’m going to have to agree with Insider on that one. According to the Interest link you provided Labour were told in 2005 that IRD needed a new computer system. They should have done something then.

Peter Dunne has been aware of this issue for all 7 years he’s been Revenue Minister.

And for three of those 7 years it was a Labour led government and it would have been Cabinet making the decision for the extra funding. The only reason for this not to have been done is if Dunne didn’t bring it to the notice of the entire government.

A reassuring timetable is especially important after Key’s comments back in February about our tax system not being able to handle the kinds of changes most economic commentators are saying are necessary to get our economy back on track.

The system is huge, it captures so many tax types (many strange types most people will never hear of), across so many tax payers (of varying types with specific rules). To upgrade is going to be a mammoth task, with an equally mammoth budget (it wouldn’t surprise me if it cost upwards of $1bil)…

Yes the problem does need to be addressed, however like many things we best not jump into the deep end, but rather take a clear and concerted approach with a realisitic time frame. Politically pushing the implementation of a new system could lead to catastrophe…

David never mentioned a time for the foundations of the system at all.

Firstly,.. what’s being talked about is “the foundations of a “new” system”… This should allow you to presuppose that this isn’t just “tacking on” to the existing system…

I’m not quite sure why this is so difficult to understand…

Secondly,.. two years is a hell of a long time when what is being done is simply setting out a “foundation” for a new system…. Implementing that could take months, or years, depending on whether the responsible minister employs competent people, or whether the job goes to “friends of friends”….

If I’m making this too complicated, let me know, and i’ll try to simplify it…(not sure how it can be simpler, but I will try)…

The KISS Principle works prity well in business Keep It Simple Stupid.

Nothing has changed in the last 100 years we have just made life more difficult.

That assumes that the foundations of the system remain stable – recall that IRD has a system that *integrates* not just income tax but also student loans, child support, kiwisaver and family support payments (aka working for families). Think back to how much these have changed over the last seven years and how the govt always wants changes done in the shortest time for the lowest cost and you’ll understand why it’s still done in FIRST and not in a new system – building a *new* system is expensive and takes time.

Also the complexity of the system is such that many of the rules were embedded within it and not documented by Anderson Consulting when they built it – hence discovery of the requirements from scratch by outside consultants will most likely take more than two years, especially given that many of the rules are historic (I believe this was the main issue with student loans). Just think of how many different versions of the IR3 there have been over the past seven years, then add in the various IR4s etc

You said ‘Any response prominently featuring the word ‘relaxed’ and speaking of 5-10 years simply won’t cut the mustard.’

People commenting (not just myself) suggest that 5-10 years is possibly a realistic time frame.

I questioned that you had one some research on this. Perhaps using the word ‘basic’ was a bit flippant, but hardly trolling.

A good team of system analysts would be able to configure the foundations of a new system within two years…. implementation is actually relatively easy, as long as the basic structures have been properly developed….

Seems like a job best left to a competent minister to oversee…

Fortunately, we should have one in a year or two…Once the change of government happens…