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Legislative barriers

Are there any other legislative barriers which prevent transactions being carried out through digital services?

Inland Revenue Acts

The Inland Revenue Acts set out the obligations that customers and Inland Revenue must meet, including for the provision of information and returns. There are three categories of requirement dealing with how communication/interaction should be made:

  • those that are silent on how the engagement should be made;
  • those that give the Commissioner a discretion on how the engagement should be made; and
  • those where the specific form of engagement is prescribed in legislation.

No legislative change is needed for the first two categories.

In the third category set out above, provisions which, for example, require information to be provided “in writing”, or “by post”  would appear to prevent the move to digital services.

The Electronic Transactions Act 2002 can override these rules, if, effectively, both parties to the transaction consent. This would enable the Electronic Transactions Act to potentially override even specific requirements in tax legislation.

While the Electronic Transactions Act would allow tax communication to move to digital services even in light of express requirements for non-digital services, this would conflict with the important principle of tax legislation being as simple and clear as possible.

The Electronic Transactions Act would also not deal with situations where the Commissioner had decided that certain customers should be required to use digital services.

The Government therefore proposes that the Revenue Acts be reviewed and, where they contain provisions that appear to prohibit digital services from being used, they be amended to use neutral language.

Can you think of any legislative barriers other than those described above that need to be addressed to allow transactions to be carried out via digital services?

Comments

George Spark
No doubt there are many regulations, terms & conditions, laws, forms and more which have this kind of terminology in them. As long as they're accessible in digital format, they should probably be searched for these terms using "search & replace" ;-)

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1 year ago
Delwyn
I manage an accounting & payroll bureau for NFPs. Because all of our clients are charities they don't have to file income tax returns. That means we are not eligible to be registered as a tax agent because the legislation requires a minimum of 10 income tax returns to be filed before you are eligible to apply to be a tax agent. We file hundreds of GST returns each year (and do that through our Practice Management software) but have to get staff individually nominated to act on behalf of clients for us to be able to talk to IRD about any tax issues our clients have. I think the tax agency requirements were developed before GST was introduced and the legislation needs to be updated to count the filing of GST returns for clients in the criteria for tax agency.

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1 year ago
Glenn
You have stated above the Electronics Transactions Act 2002 requires the consent of both parties. Threatening the other party with a penalty if they do not consent I am pretty sure contravenes the Crimes Act.

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1 year ago
L Gaugau
In order to establish ETA 2002 Section 15 (2b) would the commissioner consider a proposed solid digital framework of a global IRD Steering Board to pilot project an assigned control boards participation of the current PCI Data Security Standard open global forum that is responsible for the development, management, education and awareness of the PCI Data Security Standard. Raising awareness of the preferred digital payment architecture which in order to claim the “long arm” jurisdiction over foreign parties to govern the establishment a global standard for the preferred digital payment architecture. This then apply the rules of engagement and current infringements that are already intact would be fair and reasonable and then be deemed in compliance with Section 15 (2b). Provide the reciprocal process of foreign governments establishing a compulsory system of licensing of certification authorities.

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1 year ago
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