Back to Making Tax Simpler
Individuals

Do you think this is a good idea?

New technology would allow Inland Revenue to receive accurate income information from employers and other payers of income.  Inland Revenue could then provide an individual with a secure online ‘tax statement’ showing those income details.  This could include amalgamation of various tax interactions in one place (for example, including donation rebates).  The key would be to make that interaction as simple as possible.

The only action required for the vast majority of customers would be to check and confirm details.  Some people would also need to report other income received, such as overseas income, if there was no tax deducted at source. 

Do you agree with the idea of requiring individuals to interact with the tax system by online tax statements?

If not, why not?

Is there anything else we should consider?

Comments

Barbara Kelly
"Refunds and any underpayments of tax could be made or recovered automatically based on better use of technology." I am concerned about the automatic recovery of underpayments. My employer made a mistake in the tax calculated on some back pay. There needs to be some dialogue rather than "automatically" deducting money. The tax has to be paid but the burden should not be such that it puts a person in financial hardship.

Do you agree with this comment?

  • agree27
  • disagree1
1 year ago
Gayle
How does any of these changes put a stop to the Cash jobs under the table and not declared, there are those working in the building industry, Restaurants, cleaning, Car mechanics etc. etc. etc and other areas that have been getting away with paying tax for years and it is still going on. This is where you should be looking instead of hitting the average worker who works for a wage. It also does not address company's paying their fare share fairly. Again it is wage and salary workers who will take the full load of this. IRD definitely under estimates the payments for cash that is out there.

Do you agree with this comment?

  • agree18
  • disagree9
1 year ago
Robert Urquhart
The idea that /everyone must be taxed/ on /everything/ is possibly a sacred cow which is overdue to be sent off to the works. It is likely that we would better serve those who find themselves getting by in a cash economy in 21st Century NZ by letting them keep those few dollars in tax for day-to-day living. Of the people I know who often deal in cash many would be happier to declare it (as they are legally required to) if they had a greater degree of certainty that it would be processed and applied to their welfare entitlements correctly rather than causing an unexpected shortage down the track as a miscalculation is clawed back from their entitlement without notice. This is however not a problem with IRD processes and mostly beyond the scope of this discussion. For those better off who are deliberately flouting the declaration requirements there are already laws in place and more real-time information on income/expenses along with a reduced need to assign resources to other compliance issues the IRD will be better placed to identify these businesses and individuals and enforce these laws.

Do you agree with this comment?

  • agree4
  • disagree2
1 year ago
Martin Finkel
One way to change the under-the-table culture would be to tax all of a person's income at the same rate regardless of source. Current tax regulations tax second sources of income at a higher rate than primary income. Why? Instead, recognise all sources of income the same, with only the total income being the determinant of rate. Individuals will be less likely to hide income if its perceived that the tax burden will be fair. I expect the Government's take under such a scheme will go up as more income from secondary sources is declared, even as the marginal rate on that income decreases.

Do you agree with this comment?

  • agree0
  • disagree0
1 year ago
Sarah P
I don't think individuals should be required to interact. Honestly, I believe this will create an expensive system which will not generate any more tax income - the people avoiding paying tax, or not declaring additional income, will continue to not declare it. Realistically, we should be trying to bring our top tax bracket equal to that of the mother nation (Britain), and other developed countries. Then we would be closer to generating the surplus everyone talks about.

Do you agree with this comment?

  • agree13
  • disagree6
1 year ago
Bill Reeder
Right but take it further. Low flat tax. Everyone. Take out the loopholes and creative accounting by corporates. Make life simpler and fairer for the workhorse of NZ ie the small to medium businesses who comply at big cost and time and pay their dues. INCENTIVISE to produce, quit having to think about how to reduce taxes. You get more of YOUR money and you work harder to grow your business. Often growing your business, employing more staff, results in less personal return. Incentive take a battering.

Do you agree with this comment?

  • agree5
  • disagree0
1 year ago
louisa o'brien
I like the idea of a flat tax also - removes complications or people attempting to adjust income to meet an earning/tax threshold - the juggling between company tax and individual tax for small businesses etc. a flat tax that was vigorously imposed and collected may balance the loss from the former higher tax bands. or perhaps two bands of tax - one at 15% and one at 25%? if more of the untaxed cash economy (evaders, avoiders, cashies, etc) were captured it would also offset losses. this may need a declared 'no tax to pay' system as well - so that children, occasional workers for income, students and others who wouldn't make a threshold still reported but were 'excused' tax. that way everyone gets into a mindset that tax should be paid but as a fair society we recognised equity and cost of compliance.

Do you agree with this comment?

  • agree3
  • disagree0
1 year ago
Ralph
Taken from the introduction on this site: "Every time you interact with Inland Revenue it costs you time and money. " This is true, but the solution outlined will "require" us to have an extra interaction with IRD. To be honest, my life is too busy trying to make ends meet and support my family to even think about picking up extra "duties" imposed on us. I may have missed this in the text, what if people do not have access to the Internet? Are there accessibility options planned?

Do you agree with this comment?

  • agree16
  • disagree1
1 year ago
Chris
If you put take the responsibility of paying the correct amount of tax out of the hands of the PAYE earner, then you should get it right first time, and any errors should fall on the revenue collector rather than being handed back to the PAYE earner as a nice surprise at the end of the tax year, to their detriment. PAYE earners have no choice but to participate in the system, so to force them to check for IRD errors in calculation is against the principles of a PAYE system. The vast majority of PAYE earners shouldn't have to participate at all. If a PAYE earner submits incorrect information, then they should be required to pay the extra tax or be entitled to an automatic refund. If, however, an employer submits incorrect information, then any errors need to be corrected by the employer - if that comes down to an underpayment, the employer needs to correct it. If, however, your system is flawed, and it over-collects, you should hand it back automatically. If your system is flawed and it under-collects, you should take that as a notice to get it right first time and not put the burden on the individual taxpayer. If the IRD is allowed to claim money from taxpayers as a consequence of a flawed PAYE system, then IRD have no impetus to actually get a working PAYE system.

Do you agree with this comment?

  • agree21
  • disagree0
1 year ago
KH
Employers use the tax codes provided by employees plus get letters from the IRD telling them to change their employees’ tax codes - which of course they do. Is hard to see how the employer can be held responsible if the tax at the end of the year doesn't exactly balance out especially if staff have other sources of income. Also a pay may be processed at an old tax code between the time an employee should change and the employer being notified

Do you agree with this comment?

  • agree3
  • disagree1
1 year ago
Stewart Donaldson
If the current system of claiming donation tax credits on an annual basis continues, it is a good idea to pre-fill donation information in the tax returns / annual donation tax credit claim forms. However I am curious as to how this could be done without imposing reporting costs on the not-for-profit sector and incurring an additional donation tax credit cost to the government. Presumably if donation tax credits were restricted to donations made to charities registered with DIA Charities, it may be feasible to track donations made to specific charities if their registration number is required on the receipt. However, if to pre-fill that information on an individual's annual claim form requires charities to also collect the individual's IRD number and then report it to IRD with the donation amount, that would be an unreasonable impost on many charities. Given that at least a third of donations are probably not being claimed as a tax credit at the moment because people lose their receipts or forget about making the donations (that is my guess), it would be financially advantageous for donors to have this information collected and claimed automatically, though there will be an additional cost to the government in paying out more tax credits. If IRD really is going to review its approach to donation claims, I think it should consider all the options, including de-coupling donation tax credit claims from an annual claim form and allowing donors to claim the credit immediately after a donation has been made. If that happened, restricting donation tax credits to donations made to registered charities may help reduce the incidence of fraudulent claims. This approach would fix the problem of making individuals retain receipts for up to 12-18 months between the time they make a donation and the time they fill in the claim form. Reducing the time you can claim a tax credit, rather than pre-filling an annual form, may be the best solution to meet the policy objectives of simplifying the process and increasing the volume of donations made to the not-for-profit sector.

Do you agree with this comment?

  • agree12
  • disagree0
1 year ago
Nick
I think it makes perfect sense to gather any interest or dividends from the banks or other financial institutions and pre-populate this information into each individual's income tax records...this should be no more onerous for the banks than filing a PAYE monthly schedule is for a normal employer. I have often wondered why personal tax summaries could not be automatically issued at the end of each tax year and the cynic in me suspects the reason that this has never been put in place is that a lot more refunds would get issued since the vagaries of all payroll systems generally make it very difficult to under tax a wage or salary earners annual pay. Historically the tax system has always been advantageous to the government with hundreds of millions of dollars extra tax being collected each year but the rise of online tax agents has shifted the 'balance of power' and become much fairer for the over taxed individuals. Forcing the few 'underpayers' (who have no control over how much tax is duducted form their weekly pay) to file annual returns will reap in a little extra tax......I believe the bigger problem lies in the area of many small businesses paying cash to their 'employees' under the table. Presumably, there is no income tax advantage to an employer for paying cash as they would not be able to claim such payments as tax deductible expenses against their business income......so it begs the question "how much of their income and GST are they actually declaring?". I think the focus of this latest proposal should be to target compliance by the rogue businesses, rather than a small minority of individuals who through no fault of their own have had too little tax deducted from their pay. Also, I think legislation MUST be changed regarding unclaimed refunds that are more than 5 years old....it's blatantly, ethically and morally wrong that the government/IRD can still continue to apply late payment penalties and interest to tax debts for as long as they see fit but will not allow a hard working tax payer to claim back their overpaid taxes for any longer than 5 years!!

Do you agree with this comment?

  • agree7
  • disagree1
1 year ago
Jodi
You will be surprised to know how many individuals in low socio-economic areas and many elderly people (who pay tax on their pension/investments) still do not have a computer or access to a PC.....forcing them to interact with the IRD via the internet will be rather problematic. No doubt the IRD will penalize them in some way for failing to interact with the IRD using the required method??

Do you agree with this comment?

  • agree13
  • disagree1
1 year ago
Administrator
Jodi, thanks for your comment. You might be interested in the ideas to support customers who do not have access to the internet set out in our other consultation "Better Digital Services" - see https://digital.makingtaxsimpler.ird.govt.nz/learn-more-tell-us/using-digital-services/do-you-agree-specific-assistance-should-be-provided-some

Do you agree with this comment?

  • agree1
  • disagree2
1 year ago
Daniel
I think the idea of parts of the return being pre-populated sounds really helpful. As an employee-shareholder, I'd like to be able to submit how much I have been paid on a regular basis, which would auto calculate my tax liability as an estimate so I can ensure my provisional payments are on schedule!

Do you agree with this comment?

  • agree3
  • disagree1
1 year ago
Melanie
Please consider how your new system will work for workers/students on temporary visas. Will they still be able to file a paper ir3 before leaving the country? What options will be available to them to Pay from overseas if they have a small tax bill?

Do you agree with this comment?

  • agree3
  • disagree0
1 year ago
Robert Urquhart
I think it is a good idea to re-acquaint individuals with their tax obligations. Both for encouragement of financial literacy and the hope that people who are aware of how much they are paying in tax will have a keener interest in what that tax is spent on, which could in turn lead to a greater level of public awareness of and engagement with policy issues going forward.

Do you agree with this comment?

  • agree4
  • disagree3
1 year ago
Erina S
My understanding was that the exemption for filling was brought in as a majority of individuals that have a standard Wage/Salary would be paying the correct amount of tax based on the PAYE system. Those that have underpaid by choosing to use the incorrect tax code (and as a result are underpaying or overpaying their tax) are already issued with a PTS automatically and are required to have a square up. However if the employer is at fault for underdeductions why are they penalising the individual instead of education the employer who is incorrectly taxing their employees. I do not believe that such things as "tension between customers who are not required to file and those who are" is a valid reason for changing the current exemption. I would like to point out the reason that people are required to file an IR3 is due to such things as Self-employed income, Witholding Tax Payments, Overseas income, Shareholder Salaries-which isnt PAYE deducted at souce and henceforth results in a bill for the majority of filers for obvious reasons. I am on a salary, I have no assitance from the government and have no requirement to file at present. I am entitled to the Independant Earner Tax Credit and choose use the M tax code instead of the ME as this will always give me a refund in my square up at the end of the year as I am not claiming this credit throughout. It is THIS tax credit which is where a majority of "woohoo" refunds come from. I believe the "tension" that you speak of -isnt due to the fact that we arent required to file. Its because there is this misconception that we as Individuals ALWAYS get a refund and can choose to dodge our tax obligations by not filling. However this isnt the case -refunds are mostly from individuals are entitled to this tax credit and are not aware of it and those that are trying to underpay by using the incorrect tax code ARE already getting square ups automatically -so why created the hassle of making everyone file as IR3 filers are sad because "they get a refund and we pay a bill". I would also like to point out that IR3 filers can claim expenses that we Individual salary/wage earners cannot. I do not see how this is fair at all by changing things because a few are unhappy. Also by being able to claim donations online -how are we to track the reciepting of these donations?. Is it then an individuals responsibility to hold on the reciepts incase questioned and how are you to identify those who could be falsly claiming rebates? This is merely giving more opportunity for individuals to falsly claim rebates. Also I believe by removing the filing exemption will increase the contacts between IRD and Individuals as people such as Students working part time, Wage Earners -do not understand how the tax system works or how the end of year square -up are calculated and will call jsut to confirm that they are filing correctly. IRD already struggles to handle the influx of calls being made during "peak" times of the year (such as APRIL/MAY) with call wait times being up to or over an hour. How are they to manage the increased number of contacts by those who do not understand our tax system? Yes there is the option of "secure mail" through the IRD website. However this has a 7-14 day response time. Many will call to get an imediate answer rather than waiting for an emailed response or trying to navigate the current IRD website that is already difficult to find information

Do you agree with this comment?

  • agree6
  • disagree1
1 year ago
Shelley
The processes of paying tax is right up there with seeing a dentist for a root canal. It's scary for some people, (individuals as well as business and small business owners) and the less they have to do with it, the better. Hence having an accountant. Again, assuming everyone owns a computer. There is a level of poverty and the aged in NZ that makes this not so, not to mention that we are not all created equally in the, smarts department, and adding more head stuff to manage can cause a lot of people a lot of pain. I know my sons are just happy to work, pay their taxes obliviously and at the end of the financial year 'woohoo' that they are getting a refund (albiet a small one) . I was on the phone last week to the IRD to confirm my TERM. tax would be accepted as on 7th April due to the Easter holidays. It only took 45minutes and two cups of coffee and a wee snack to get my one minute chat. I haven't made any mistakes with PAYE, prove or terminal so far,,how hard can it be ? Also not interested in making PROV pmts more regularly as I'd like to keep what meagre tax I do pay in my own bank account to make interest than in the IRD's, unless of course the interest is deducted from my TERM tax at the end of the financial year. ;) Lets let it lie,,as long as employees give their correct tax code to employers, it's all sweet. Just my opinion.

Do you agree with this comment?

  • agree7
  • disagree1
1 year ago
Mary
Do you agree with the idea of requiring individuals to interact with the tax system by online tax statements? No, No, NO! For individuals, particularly the vast majority of whom are wage earners, this would constitute an inconvenience. Surely this would increase the compliance costs for IRD (workers with no computers or non computer literate, moving address, disorganized, forgetful etc). I personally would feel just plain irritated by yet ANOTHER on line job to have to do at the end of a working day - often spent online as well. I don't want to have to manage my own and my husbands personal tax as well. I am also am employer as well as an employee (elsewhere). Many of the temporary and short term workers we hire, would never get around to paying their own tax, I just know it! IRD would be chasing them round for ever. The recompense for employers in paying PAYE for their workers is the use of the taxable earnings for the month in the meantime. For me, this particular system works ok.

Do you agree with this comment?

  • agree7
  • disagree1
1 year ago
Kim Lucas
I believe ultimately individual interaction would be ideal. However, at the moment I do not trust the department to get it right. And solving errors is a nightmare. How can the current help and assistance service ( already tardy, slow, and inaccessible in real timeframes) cope with the addition of 100,000's of new customers. If only a tiny percentage of them had problems, errors, queries or just want to ask a question, how would that impact your ability to service your customers. How will the elderly, infirm, very young, or feeble get the assistance they require. Assistance would need to be available 24 x 7 to allow for shift workers and people needing assistance outside normal business hours. Has the cost of this support been factored in to the overall cost of rollout of individual tax compliance/statements.

Do you agree with this comment?

  • agree3
  • disagree1
1 year ago
CamR
This is a good idea. If a user friendly online platform is designed, say something like an internet banking website etc, people will be able to check and be aware of their tax situation anytime they like. If you are due a rebate, you'll know; if you are due to make a payment, you'll; You'll even be able to watch that enormous student load slowly vanish!

Do you agree with this comment?

  • agree2
  • disagree0
1 year ago
Merv
Payroll for an SME is by far the most complicated, time consuming and complex arrangement for collection of taxes. Why should the employer be responsible for the employee's kiwisaver, family support, court deductions, etc etc. All of these state deductions should be administered by the state. There should be no 20th of the month return- this is extra work. Why not treat all contractors / companies individuals the same way? Pay $x to the provider of the goods or service full stop. Charge GST on wages if this helps. Have no GST threshold or exemptions. The tax authorities can then deduct tax from the individuals bank account.

Do you agree with this comment?

  • agree4
  • disagree3
1 year ago
Rama
Yes, please. The change to where you pay your taxes as you earn would be a boon; especially for Contractors where the income from one year to the next could vary quite a bit.

Do you agree with this comment?

  • agree1
  • disagree3
1 year ago
Sam Arora
Every time I file a tax return, it asks me if I have earned any interest, dividends and how much tax was deducted. Why IRD has to ask that information. Would it be better if it gets the information from the bank and sync with our myIRD account or our IRD number automatically? Thanks, Sam

Do you agree with this comment?

  • agree3
  • disagree1
1 year ago
Warren
With "modern technology" that is being introduced why does a "Pay As You Earn" for a wage and salary earner require any Tax filling form at all. Surely the earnings from an employers return paying the income tax, the individuals payments etc are recorded against that individual and referred back to the employer for correction if required? If tax paid on PAYE is correct for the earning why make a problem? Is this "modern software system" incapable of these calculations and recordings. Please let us not have another Novapay!!!

Do you agree with this comment?

  • agree1
  • disagree2
1 year ago
Gareth Foster
I think this is a great idea. Online only. Go for it. For those who can't use the internet - they could use a book-keeper / accountant / care-giver. For those who can't afford the internet - there should be public terminals available (at the local library perhaps).

Do you agree with this comment?

  • agree1
  • disagree4
1 year ago
Jyoung
It would be good to file tax refund on donations online together with IR 3 instead of filling out a separate form. The explanations on expenses should be made clearer in the tax handbook.

Do you agree with this comment?

  • agree2
  • disagree1
1 year ago
A
I think pay as you ear for business is a good idea, especially for those people who struggle with the concept that the tax they are collecting is not their money, they spend it and then cry poor when provisional tax payments are due so this would go some ways to helping those people that cannot help themselves. Whilst you are at it IRD I think you should clamp down on people who are in business yet continuously do not pay the tax they owe, they rack up penalties sure but even that does not seem, enough to deter them, certainly people in my industry who are paid a decent wedge and collect on a weekly or monthly basis yet still do not pay the tax they owe, clearly these people need to be taxed at source!

Do you agree with this comment?

  • agree0
  • disagree4
1 year ago
Mary Green
Do not over estimate the number of people who have access to online information. From our experience here we know that there are many people who do not have an email address or internet access. You cannot go to a digital platform for everything unless you are going to make this internet access as financially free as receiving mail.

Do you agree with this comment?

  • agree4
  • disagree0
1 year ago
David SUTHERLAND
Not everyone has access to a computer so this would be a limiting factor, but yes I think it would be helpful to be able to have simple acess to our tax records on line.

Do you agree with this comment?

  • agree0
  • disagree1
1 year ago
Catherine Orr
I think the idea of more people interacting with the tax system is good in principle but I don't think the majority of people are financially literate enough to do so in a meaningful way. An automated form that was prepopulated and included very clear instructions on completing it with inline help options, would be useful (similar to passport application forms). I think many people recover tax refunds via companies set up to do so, but those who have underpayed just don't file a return, which is not really fair on others who have paid the correct tax. I don't agree with underpayments being recovered automatically though - that could put people into difficult financial situations.

Do you agree with this comment?

  • agree1
  • disagree0
1 year ago
Brian Whetton
I agree that technology should be used wherever possible to speed up tax revenue gathering and refunds. But do consider that not all folk have computers. I do not have a cell phone; do not need one. I wonder why I need to wait until July to get a refund when the IRD has all the information you need to process the refund now. cheers

Do you agree with this comment?

  • agree1
  • disagree0
1 year ago
Debra Knox
Wasn't sure where to file this comment so here it is anyway....Recently I had a conversation with a young Masters degree student about their dilemma in earning enough part time across more than one job to pay their living expenses. The issue was around application of secondary tax which I felt was unreasonable to apply given their very low income . I think this tax is outdated, doesn't reflect the world of work now and should be scrapped.

Do you agree with this comment?

  • agree6
  • disagree0
1 year ago
James Nimmo
I agree - secondary tax is shocking, especially if you have to use Secondary Tax + Student Loan. In fact it isn't worth it - you would be much better to work as a self employed contractor than paying secondary tax.

Do you agree with this comment?

  • agree0
  • disagree1
1 year ago
Erina
It is for this reason that they have the option of applying for a special tax code. Which takes into account these situations

Do you agree with this comment?

  • agree1
  • disagree1
1 year ago
James Nimmo
Shut down the tax rebate sharks - their advertising is misleading and people can just as easily complete it online through IRD website. Flatten income tax rates to avoid all the clever loopholes people find to minimise their tax obligations. Setup instant donation rebates - if we get an electronic receipt from certain registered charities (who use the correct format etc for their receipts, and have these logged in an approved finance system like Xero, MYOB etc), let us just forward the electronic receipt to a unique email address (i.e. donations.x235943jg90igf@ird.govt.nz) to claim the rebate. This would probably encourage people to donate more and more often.

Do you agree with this comment?

  • agree1
  • disagree1
1 year ago
jt
no, my income changes from year to year so you cant populate my from with income details

Do you agree with this comment?

  • agree0
  • disagree2
1 year ago
Christopher
When IRD moved to online filing of tax returns, I was an early adopter. At this stage one got the paper form in the mail, which you then worked on. One of the problems I encountered was the fact that the paper version was set out in a particular way that made sense, but the online form did not match the paper form, setting out different sections in a different order. This meant I had to do my taxes twice - once on paper, then again as I transferred the information from the paper form to the online form. What this highlighted to me was the criticality of how to record and capture information. A well designed form is logical and makes sense. I would encourage IRD to think carefully about how people enter information online, as this will play a big part in how willing people are to move towards greater use of a web based system.

Do you agree with this comment?

  • agree1
  • disagree1
1 year ago
Donald Horn
Every effort should be made so that individuals should be able to deal with their tax affairs without resorting to professional accountants or tax advisers. This means keeping the system simple and straightforward and providing good online and telephone support. The present paper system is pretty good. For individuals with untaxed income (overseas or otherwise) the standard Provisional Tax calculation is important. It is neigh on impossible to calculate provisional tax accurately when currency fluctuations are involved.

Do you agree with this comment?

  • agree4
  • disagree1
1 year ago
Keith Roberts
How will this work for overseas income like pensions which are dependent on exchange rates, and are not moved from overseas to NZ on a regular basis. Instead of having to work out an average exchange rate annually I presume I'll have to do this monthly, or maybe weekly. More work, more administration, but as usual, for me, not the IRD. Given that the IRD are becoming increasingly difficult to get hold of and when you do don't know the rules half the time, why are you proposing increased interaction with a department that can't cope with the existing demands on it. Once size will never fit all circumstances so don't try and shoe horn us all into the same box so you can cut IRD expenses at the same time as making life more onerous for the average tax payer

Do you agree with this comment?

  • agree3
  • disagree0
1 year ago
Neil
It is a great idea but it needs to be faster. This year I had to wait from 1 April to 24 April just to get a e-return template up on your IT system. Too long. I already knew what my 12 months earnings were. I could have filed my return on 1 April. Previously once an e-return was filed, the assessment was turned around in 24/48 hours [2009 to 2013]. Last year the same process took approximately a month and this year, a fortnight so far and still counting. I might as well have filed just a manual return through the old process at current pace. Ditto with your donations rebate form. Your system is telling me the form was posted out to me on 11 April 2015, yet nearly a month later and still nothing has been received through the mail. The only thing which likely happened on the 11th was a file was triggered and sent somewhere for printing once all the logistics [stationery, etc] were aligned. If you had made the pre-populated form available to me on line, I could have printed it off myself and filed it and maybe had my refund back by now. The above are just two examples of where you are TOO slow. If you are going to things in the front office, you need to do them with speed. You can take all the time you need in the back office to run your checks and analysis programmes. After all, I thought you treated NZ citizens as honest until they proved otherwise.

Do you agree with this comment?

  • agree1
  • disagree1
1 year ago
June
Having the ability to pay provisional tax on a monthly basis sounds brilliant to me. It'll help everyone with their budgeting and despite being given the payment dates and amounts well in advance plus the reminders, it can still come as a burden especially when payment coincides with other big bills like local rate bills. No, I'm not a big earner in case people think I am and therefore it isn't necessary for me to budget. It would be helpful to all and far easier and could eliminate the need for so many over and under payments that need to be rectified as income would be transparent.

Do you agree with this comment?

  • agree0
  • disagree2
1 year ago
David Gifford
I'm all for both simplification and on- line filing of individuals' returns. I like the idea of being able to offset donations against tax to pay, rather than have the 2 processes separate. (except if there is no tax to pay, and a refund is applied).

Do you agree with this comment?

  • agree3
  • disagree0
1 year ago
Peter Williams
Yes, I agree with this suggestion subject to there being sufficient safeguards. The current government is already becoming increasing Big Brother and adopting various spying strategies on innocent people.

Do you agree with this comment?

  • agree3
  • disagree0
1 year ago
John Sjouke Kuindersma
As a 75 yr old retiree, I am all for it. Regarding my personal IR3, I would like to find the same boxes ticked in advance (as I do every year), only needing a quick glance-over by myself, so that the only things to be filled out would be income from interest, shares and the like, and oversees income. Everything already filled out (like NZ Super) is a good start. And please automatically take care of next year's provisional tax (i.e. I can opt out if I'd wish). I actually forgot about it with my '15 tax return! Just hope I don't get fined for it - in jest. I would like to keep donations separate, as I prefer to have my 33% refund asap, and get some interest on it until such time my provisional tax for the next year is due.

Do you agree with this comment?

  • agree2
  • disagree1
1 year ago
Mark Dixon
There are still a large number of people who are not computer literate, especially in the older sector. I don't think it is fair to require people to operate on-line at this point in time. That time will come as computer literacy cycle through the generations but to load up the older baby boomer parents with this isn't fair.

Do you agree with this comment?

  • agree2
  • disagree1
1 year ago
louisa o'brien
Yes I agree that this would be a good system - a pre-populated form, completed largely by IRD and the employer. the individual would review, could opt-in bank account details so withholding tax on bank deposits were received by by IRD as well. donations would be an individually entered item but as the year progressed and totals automatically tallied - those who wish to limit their income for other purposes could see when they were reaching a threshold. other individuals could then use this as an incentive to earn more than they did this time last year or something of that nature (a timeline of previous earning by year like a bar graph). at the end of the tax year it would be clear what adjustments needed to be made (periods of unemployment reducing the tax level, additions of child allowance, student allowance etc). this would in time allow a staggered tax year as the IRD could then accept non-March and non-December returns for those who had demonstrated consistently 'simple' tax situations and take some pressure and delay off individuals and accountants who had to wait for certain dates to receive financial year end data to forward to a customer/individual.

Do you agree with this comment?

  • agree2
  • disagree1
1 year ago
William Makey
Yes I agrree - I currently have income soley through dividend and interest payments. It takes me a very long time and a lot of work to collect all the information and complete an IR3. This process is also prone to human error solely through making mistakes. What's the point????!!! The IRD already accurately has this information - each time I receive a payment a copy is sent by the payer to the IRD, so why do I have to spend all this time and effort to send the IRD info they aleady have - it is ridiculous!!!!!!!!!!!!!!!!

Do you agree with this comment?

  • agree1
  • disagree1
1 year ago
Chris Hagon
The present provisional tax system is outdated and should be scrapped in favour of a monthly assessment system similar to PAYE. It would, of course, rely to some xtent on the honesty of the taxpayer, but would avoid having to find that large capital sum every 3 months. It would also discourage taxpayers from thinking they can spend that untaxed income and hope to find a large lump sum 3 times a year.

Do you agree with this comment?

  • agree0
  • disagree1
1 year ago
Scroll To Top