Making tax easier – Government consultation June 9 – July 23 2010

You spend a lot of time dealing with tax. If you’d prefer a tax system that’s less complex, faster, and more certain, join the discussion. The Government is now consulting on proposed changes to Inland Revenue’s systems and processes. Consultation is through a public online forum and discussion document. Whanau we need Maori input into NZ’s tax laws, so please read on:

The proposals cover:

• reducing the use of paper (for taxpayers and Inland Revenue ) and increasing Inland Revenue’s online services and technology
• reforming the PAYE and personal tax summary process, including making PAYE a final tax for many people in fulltime, permanent employment
• a new framework for Inland Revenue sharing information, with appropriate safeguards, with other Government agencies.

Changes would mean:

• You would be able to manage most of your tax and social policy affairs through your own secure area on Inland Revenue’s website – like internet banking. You’d be able to see updates and account changes immediately and know whether you’d got it right.
• Employers would use better technology to reduce errors in PAYE and deductions, so you would hardly ever have to contact Inland Revenue.
• PAYE deducted each pay-day would be more accurate and, for some people in full-time work, could be a final tax. You’d know how much you had to spend or save each pay-day, and wouldn’t need an annual squareup of PAYE income.
• Inland Revenue might be able to share some tax information with other government departments, so you wouldn’t have to provide the same information over and over to different government agencies. This would help people changing jobs, swapping between a benefit and a job or making student loan repayments. There would be appropriate privacy safeguards for sharing information.

The Government is seeking comment from all New Zealanders. Videos and stories online show differences between dealing with Inland Revenue now and what it could be like in future. You can see full details, follow the discussion and comment online at www.ird.govt.nz/makingtaxeasier

You can also access the full discussion document here www.taxpolicy.ird.govt.nz and send your detailed feedback to Inland Revenue Policy Advice Division.