More Taxes And Payers, Fewer Tax-gatherers

Press, Volume CVI, Issue 31108, 11 July 1966, Page 12

More Taxes And Payers, Fewer Tax-gatherers

To some taxpayers the news that the Inland Revenue Department is doing its work with increasing efficiency may not bring much pleasure. Most, however, will be gratified to know that although the department has collected in the last year nearly £327 million, which is £3l million more than the year before, and has handled 3.7 per cent more income tax returns and land tax assessments, the cost of collection has declined. Two years ago it cost £99 to gather every £lO,OOO of total revenue. Last year, according to the annual report of the Commissioner of Inland Revenue (Mr L. J. Rathgen), it cost only £B6. One reason is that the staff of the department is smaller today than it was in 1963; another is that most individual returns show higher incomes and the tax yield is accordingly raised without more work by the department. Nevertheless, fewer staff are handling more returns and a further reduction of staff is forecast. So Mr Rathgen and his staff are defying the principles of Parkinson; the Inland Revenue staff contracts in proportion to the efficiency with which expanded work is done in the time available. It is, indeed, quite reasonable to expect—as Mr Rathgen exnects—that the “ increased work, additional responsibility, greater “ technical proficiency, and service given by my staff “ will be recognised and adequately rewarded ”, If Mr Rathgen is as skilful in his consultations with the State Services Commission as he apparently is in getting greater productivity from his staff this might be one example of higher pay not adding to the cost of the job.