Making PAYE a final tax for many people and a framework for sharing relevant information with other government departments are two tax proposals that the Government is currently consulting through an online consultation forum and formal discussion document.
Making Tax Easier (www.ird.govt.nz/makingtaxeasier) website discusses simplifying Inland Revenue’s (IR) systems and processes to provide more responsive online services, reduce the amount of paper required, provide tailored support for taxpayers and intermediaries, and reduce business compliance costs.
Under the proposals, individuals, businesses, employers and intermediaries would manage most of their tax affairs (and social entitlements) online through their own secure space on the IR website, in an approach like internet banking.
Rapid responses and confirmation would aid certainty in dealing with tax.
For businesses and employers, new payroll software would manage a range of routine PAYE tasks including the employer monthly schedule.
Software that updates and exchanges information with IR systems could automatically correct most current errors in PAYE information before it is sent to the Department.
PAYE deducted each pay-day would be accurate, and be the final tax for many people in full-time work, although annual square-ups would be retained for other groups of workers and those with other income.
Further proposals cover sharing some information with appropriate privacy safeguards with other government departments, to reduce compliance costs and make it easier for people changing employment, going on parental leave, or updating their student loan repayments.
Before any changes are made, the Government is seeking wide comment on proposals.
‘Making Tax Easier’ online forum site is open now for discussion.
The site has specific proposals and questions that affect different taxpayer groups.
A formal discussion document (www.taxpolicy.ird.govt.nz) is also available online.
You can obtain the proposal by writing to IR Policy Division.
IR is managing the Consultation process for the Government.
The Forum will remain open until July 23.
Abdul Rafik is Inland Revenue’s Community Relationships Advisor based in Auckland. He is happy to answer readers’ queries, which should be sent to venkat@indiannewslink.co.nz
If you are in business, you may like to attend one of our free tax seminars or workshops held across the country. Visit www.ird.govt.nz and enter Seminars in search function.
