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Making tax easier - Government consultation June 9 to 23 July 2010

'Making tax simpler' is a discussion document on changes to the way taxpayers deal with IR. Document open for public consultation June 9 to 23 July 2010.

On June 9, Revenue Minister Peter Dunne launched a public online consultation forum and discussion document on changes to the way taxpayers deal with Inland Revenue.

"Making tax simpler" discusses simplifying Inland Revenue's 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 Inland Revenue 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 Inland Revenue systems could automatically correct most current errors in PAYE information before it is sent.

PAYE deducted each pay day would be accurate and a 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.

Consultation is being managed for the Government by Inland Revenue, and will remain open until 23 July.

In addition to the online forum, the formal discussion document is available to download from the Policy Advice Division website, or by writing to:

Policy Advice Division
Inland Revenue
PO Box 2198
Wellington 6140