The Generic Tax Policy Process: Background Paper for Session 14 of the Tax Working Group

New Zealand has a formalised Generic Tax Policy Process (GTPP) which contains opportunities for public engagement throughout the different phases of the policy process.  We consider that the GTPP plays an important role in creating and sustaining a tax system that is both widely accepted by taxpayers, and is able to respond to New Zealand’s changing needs.  Nevertheless, improvements could be made to the process to ensure it achieves intended outcomes.  This paper outlines the benefits and costs of the GTPP in its current form, and makes comparisons with other jurisdictions.  It then outlines the refinements to the GTPP being developed by tax policy officials in response to feedback from key stakeholders, which we think addresses many of the submissions made to the Tax Working Group.