On average, the case study company took 264 hours to comply with its tax obligations, and made 25.8 payments with an average total tax rate of 40.9 per cent.
Compared to a year earlier, those averages had dropped for total tax rates, time to comply and the number of payments.
In the New Zealand tax system, the business took 152 hours and made eight tax payments with a total tax rate of 34.4 per cent.
New Zealand places itself well as a place where it's easier to pay and file taxes. This gives confidence to overseas businesses and investments from overseas as a result.
In my experience, administration of tax is not usually as important for companies as tax systems or the tax rate. Large companies are generally drawn to a particular place as a base by a lower corporate tax rate.
But the study found that how attractive an economy was to operate in was also linked to less hours spent on compliance.
This is a good thing; it means the governors of our country can focus on how to improve the economy.
However, those countries that have reduced the administration of taxes are more likely to challenge tax affairs through an increase in audits and interpretations of tax law.
Although it won't be the only reason why overseas companies will move here, it's satisfying to know that we are posting some benefits and progress to our tax system to continue a transition to an ease of business approach in New Zealand.
The study suggested that post filing processes were in most need of improvement by tax collectors, whether that was aspects of service, information access or audit procedures.
With further changes in technology such as access to fibre, the cloud and the Inland Revenue continuing its system upgrade we will continue to see efficiency gains.
Jeremy Tauri is an associate at Plus Chartered Accountants.
