Inland Revenue is set to cut 1500 jobs between 2018 and 2021, an IRD spokesperson has confirmed.
The job cuts are said to be "across the board", but will mostly affect those in administration and information technology roles.
IRD today publicly released its latest Business Transformation (BT) report which states the cuts are part of a cost-reduction, modernisation programme.
The programme is part of a $1 billion plus modernisation of the tax system and the biggest change to the system in 25 years. It will see Inland Revenue's workforce shrink by 25 to 30 per cent.
It is believed some of the cuts would be at Inland Revenue's head office in Wellington.
IRD is currently in the process of modernising its operation process through business transformation.
Customers can expect future services to entail less human interaction, clearer and simpler digital services and tax transactions through accounting software.
It's website states there will be less need to contact the company.
The BT programme aims to enable smaller end-of-the-year tax refunds and debt.