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01 Jun 1982

Income Tax Amendment Act 1981

Archived legislative commentary on the Income Tax Amendment Act 1981 from PIB vol 117 June 1982.

This commentary item was published in Public Information Bulletin Volume 117, June 1982

More information about Public Information Bulletins.

Recent legislative changes have enabled the introduction of the use of an amalgamated form instead of the previously separate PAYE reconciliation and employer accident compensation levy statements. The following is the text of a letter issued to all employers with the new form in March 1982.

Annual Paye Reconciliation and Employer Accident Compensation Levy Statement - IR68


Following legislative changes introduced in 1981, from 1 April 1982 only a single combined form (IR68) will be issued to employers for the purposes of both the annual PAYE reconciliation and the accident compensation (employer's levy) payment. The previous separate PAYE reconciliation (IR68) and accident compensation levy (ACC 501) statements will no longer be required. This note provides an explanation of details of the new procedures in relation to the new combined form. The combined form is enclosed for completion.

Due Dates

The due date for furnishing the combined IR68 and payment of the employer accident compensation levy is 31 May 1982. A 10% penalty for late payment is charged on any levy not paid by 31 May. In previous years the PAYE reconciliation was due by 15 May and the employer accident compensation levy statement with payment was due by 30 June.

Permanent Cessation as an Employer

An employer who has permanently ceased paying wages is required to furnish the PAYE reconciliation and accident compensation statements for wages paid from 1 April to the date of cessation. From 1 April 1982 only the new combined form should be used. The IR68 form for the purposes of this final statement is obtainable from any Inland Revenue office. It is due by the 15th day of the second month after employing ceases and should be accompanied by the payment for the accident compensation levy payable.

Levy Year As the PAYE portion of the combined form relates to wages paid in the year ended 31 March 1982 the employer accident compensation levy to be calculated by reference to those same wages will, for convenience, also be referred to as 1982 levy.

Other Changes Other legislative changes provide for the abolition, from 1 April 1982, of provisional levies payable by new employers and of "cessation" adjustments when ceasing to employ. Transitional adjustments may assist in the following circumstances:

  • If you commenced employing after 1 April 1980 and have made a 1982 provisional levy payment, you will be entitled to deduct that payment from your actual levy liability. Show the payment in the panel provided on the IR68, immediately below the total levy figure.
  • If you were employing at 1 April 1980 and have ceased to employ after 1 April 1982, you may be entitled to a levy adjustment on cessation. If this is the case you should make written application for a cessation adjustment which will be considered under the provisions of section 80(7)(f) of the Accident Compensation Act 1972. Any adjustment will generally be made along similar lines to such adjustments made before the abolition of provisional and cessation procedures.


Remuneration determined up to 31 May in respect of the year ended 31 March 1982 for shareholder-employees should be included in the figures for the PAYE reconciliation and the levy paid thereon by 31 May. Where the shareholder-employee's remuneration is determined after 31 May but before 30 November, a form ACC 506 should be furnished by 30 November with the levy payment.

Two further questions have been included on the IR68 (bottom left-hand panel). Your answers to these questions will ensure that you are issued with the correct forms for accident compensation levy purposes.

Special Arrangements

The Department has special arrangements with a number of large businesses whereby each branch of the business reconciles eparately its PAYE tax deductions and the Head Office accounts for the accident compensation levy. In these cases the individual branches may continue to complete the top part of the reconciliation statement (IR68) in respect of the PAYE tax deductions. The IRD number of the branch which is responsible for the accident compensation levy should be entered in the panel at the bottom left of the form.

It is the responsibility of the employer to ensure that both the PAYE tax deduction and accident compensation levy information is included in the form.


After completion, the first two copies of the form should be forwarded to the nearest Inland Revenue office together with the tax deduction certificates and the levy payment. The third copy should be forwarded only in those cases where a receipt for the levy payment is required. The fourth copy should be retained as part of your wage records.


Further information relating to an employer's responsibilities in respect of PAYE and accident compensation levies are explained in the booklets "Levies on Employers" and "Guide to Employers" from any Inland Revenue office. The changes outlined in this note will be incorporated when the booklets are reprinted.

If you require advice about your PAYE tax or employer accident compensation levy obligations, including the completion of the IR68, the staff in your nearest Inland Revenue office will be pleased to answer any query. Enquiries should be directed to the EV&A Section.

J. Simcock