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IR/MSD Community Services Card Programme
Annual Report
Purpose: To identify people who qualify for a Community Services Card (CSC) based on their level of income and number of children.
Year commenced: 1992
Features: Data transferred fortnightly by USB stick.
IR disclosure to MSD: For individual tax payers who have received Working for Families Tax Credits (WfFTC), IR provides MSD with the full name, address, annual income and IRD number of the primary carer (and partner if any), the number of children in their care and dates of birth, and the annual amount of WfFTC.
2010/11 activity:
| Match runs | 50 |
| Records received for matching | 2,188,194 |
| CSCs automatically renewed | 298,672 |
| 'Invitation to Apply' forms sent out | 88,743 |
| Notices of adverse action | 30,758 |
| Challenges | 67 |
| Successful challenges | 63 |
Commentary: Following the identification of errors in data extracted for this match in 2009/10, IR has continued to investigate the income information it reports to MSD. It has identified a further inconsistency in the definitions of income that may have understated income for an estimated 1,100 card holders. This means some cards may have been issued to people who are not entitled to them. IR is working with the Ministry of Health (as providing access to health subsidies is the primary function of Community Service Card) and MSD to clarify the appropriate definitions of income by 1 April 2012.IR recently identified two errors in the programme it uses to extract the data for this match. These errors resulted in IR under-reporting income to MSD, which relied upon this information when assessing eligibility for the CSC. As a result, MSD estimated that up to 6,300 cards are currently issued to people who are not entitled to them.
Compliance: Compliant with the information matching rules but not conforming to the purpose of the programme.
Technical information
| Information matching provision | Tax Administration Act 1994, s.83 |
| Year authorised/commenced | 1991/1992 |
| Programme type | Confirming eligibility Identifying unclaimed entitlement |
| Unique identifiers | Tax file number |
System description
IR provides a fortnightly extract of individual taxpayers who have received family support tax credits. The data is transferred on an encrypted USB "Ironkey" which is hand delivered or sent by registered courier.
The IR file is matched against the MSD system SWIFTT and, for valid matches, the total income information provided by IR to MSD is checked against the income entitlement limits for the CSC. The income limits vary depending upon the number of dependent children. IR records that do not match SWIFTT records are ignored.
Existing holders of a CSC whose continuing eligibility is confirmed in this match, receive a renewal flag on their SWIFTT file, so that a new card is automatically generated when the existing card expires.
Existing holders of a CSC whose eligibility is not confirmed by this match are sent a letter advising that the holder appears now to be over the income limit and so their current card will not be renewed automatically (s103 notice).
Beneficiaries who are identified in this match as being potentially eligible and who are not currently holding a CSC are sent a letter advising that they appear to be eligible and enclosing an application form in case they wish to apply.
Historical activity
| 2005/06 | 2006/07 | 2007/08 | 2008/09 | 2009/10 | |
| Runs | 50 | 52 | 50 | 52 | 50 |
| Records received for matching[1] | 1,279,851 | 1,488,641 | 2,140,739 | 2,639,393 | 1,548,824 |
| CSC Cards automatically renewed[2] | 216,900 | 229,660 | 311,536 | 422,379 | 226,741 |
| 'Invitation to Apply' forms sent out | 77,694 | 82,681 | 92,523 | 110,855 | 90,482 |
| Notices of adverse action | 10,218 | 17,176 | 31,330 | 37,751 | 22,126 |
| Challenges | 135 | 281 | 498 | 240 | 80 |
| Challenges upheld | 22 | 18 | 0 | 0 | 65 |
[1] Includes changes in income requiring their eligibility be reassessed.
[2] These figures do not include cards automatically issued to students based upon a match between Studylink and Work and Income.