IRD to Overhaul PAYE

September 20, 2013 New Zealand Taxation

Numbers And FinanceThe PAYE system is due for modernization and an extensive overhaul.

In a speech given on September 19th the Minister of Revenue Todd McClay stated that the PAYE system would be the first element of the IRD’s current infrastructure to be upgraded as part of an ongoing initiative to modernize the tax authorities infrastructure.

He explained that the IRD’s upgrade will aim to streamline the process complying with the necessary PAYE requirements, and the improvement will make it easy for employers to share all necessary tax and wage information.

Explainign why the IRD chose to improve the PAYE system first, Todd McClay said that, in its current form, the PAYE system is “…is labor-intensive, often requiring double-handling and repeat contacts from IRD, thus making it a significant burden on employers”, making it “a… prime candidate for a makeover, and I’m really talking about an extreme makeover”.

It is envisioned that the improved system will make greater use of electronic submissions, and consultation on the upgrade is expected to be launched soon.

Photo by kenteegardin