As Inland Revenue’s transformation programme progresses, the levels of service offered to everyone affected by the tax system in some way are expected to significantly improve. In some circumstances, those improvements will be contingent on Inland Revenue receiving information through digital channels – for example, employers, who provide PAYE information about their employees to Inland Revenue.
PAYE information is critical to determining matters like social policy entitlements of employees. The tax system is likely to evolve so that Inland Revenue can deliver better services to these employees (such as correct calculations of Working for Families entitlements for each pay period, removing any need for annual square-ups), when their employers are working with Inland Revenue via digital services.
Another example could be tax intermediaries, who provide information to Inland Revenue on the tax affairs of their clients. Inland Revenue may be able to deliver better services to these clients – such as allowing them to check their tax position online in near real-time, when their tax agents are working with Inland Revenue via digital services.
As noted above, as well as this information being critical to determine the tax position of others, it may also be used by other government agencies to determine other liabilities. For example, information provided by employers to Inland Revenue is used by ACC to determine liability for earner account levies for employees.