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IRD project tracking below budget

NZN 14/07/2016 By Paul McBeth

The tax department says a 10-year project to overhaul its IT infrastructure and make things easier for taxpayers is still tracking below budget.

Treasury documents released on Thursday showed the total cost of the project may be as much as $2.61 billion, when depreciation, capital charges and inflation adjustment are included.

Inland Revenue says these figures "have always been indicated in any reports to government", although they have not been included in public discussion of the estimated cost.

Excluding them, IRD estimates the total cost of $1.6b-$1.8b, of which the government is stumping up $1b and the balance coming from the tax department's existing reserves.

"The project is continuing to track on plan and is currently underspending against the budget approved by government," IRD said in a statement.

The tax department's business transformation project is replacing a 30-year-old system and will allow it to introduce new processes to make it easier for taxpayers to interact with the agency.

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