Government Calls for Comment on IRD Reforms
July 16, 2010 New Zealand Taxation
The New Zealand Government is proposing a series of extensive transformation to the tax filing administration process, promising to deliver greater information ability, ease of filing, along with lowered incidence of processing error and calculation mistakes.
The Government and the Inland Revenue Department (IRD) are urging New Zealand taxpayers to give comment on planned changes to tax administration. On June 15th the Making Tax Easier proposal was introduced, along with a public consultation period lasting until July 23rd.
For individual taxpayers, the IRD has proposed creating a new digital portal, which would theoretically allow individuals to manage all their tax affairs. The idea is promised to be similar to internet banking in regards usability and security. New software standards have also been suggested, which will improve the reliability and timeliness of PAYE tax data.
For corporate clients, the IRD is suggesting the implementation of advanced internet-based information sharing which will allow accounting software to manage routine business related tax tasks. It is envisioned that the applications will share IRD-held information on a businesses employees and automatically adjust their PAYE requirements. Within the discussion, the IRD has also invited comment on the idea of mandating electronic filing for non-for-profit organizations.
Additionally, the IRD has proposed instating a new Government inter-department information sharing system, claiming it will reduce redundancy and data gathering. Concerns have already been raised about possible privacy implications for the idea. However, the initiative could reduce incidence of tax evasion or money laundering.