The pursuit began about 2.19pm on February 5, shortly after Tahana drove off from a service station in Papamoa, in the Bay of Plenty, without paying for petrol.
The unroadworthy car had been reported stolen from Rotorua the night before.
The IPCA found police complied with pursuit and communication policies during the early stages of the pursuit.
However, they were plagued by communication difficulties during the final 14 minutes of the pursuit, which covered almost 30km over the Kaimai Ranges at an average speed of 122km/h.
The final stage took place through areas covered by three different police radio channels, which led to confusion about which car was leading the pursuit and how many police vehicles were involved.
Communication issues also led to the decision to use road spikes, which should not have been used on a car driving at more than 100km/h.
The car was travelling at 126km/h before it began to brake about 42 metres ahead of the spikes. It hit the spikes at 116km/h or more, losing control and sliding into a parked van, about 2.40pm.
One person in the van was injured, as well as two people travelling with Tahana.
The IPCA found the pursuit should have been abandoned earlier and the decision to use road spikes was a breach of policy.
The pursuit controller also breached policy by failing to adequately supervise, monitor or maintain communications between the pursuing officers.
The IPCA recommended police assess the effectiveness of radio communications in the Kaimai Ranges area.
It also made recommendations on an earlier stage of the pursuit in which police followed the Holden within the speed limit, with lights and sirens off, after abandoning an earlier high-speed chase.
It said police should clarify guidelines on following vehicles after a pursuit has been called off, and clarify whether or not following vehicles in such circumstances constitutes a continuation of the pursuit.
Police have recorded 1280 police pursuits so far this year, from January 1 to July 22, with 199 ending in crashes, six deaths and 61 injuries.
In the latest pursuit, a man was hospitalised with serious injuries after a vehicle slammed into a turning truck in Palmerston North early on Saturday morning.
The police report released Thursday recommended more staff training, limiting the number of vehicles involved in pursuits, expanding the abandonment criteria, and abandoning pursuits once an offender's identity was known so an arrest could be made later.
The report also made recommendations on risk management, including an assessment by police on whether their actions were proportionate to the offence and whether their decisions and resulting actions were justified.
- NZPA