Further details on the proposal to pre-populate tax returns for individuals will form part of a future Government discussion document on improving the tax system for individuals.
Below are several questions around how pre-population will work for individual taxpayers and some high-level indications of the direction that the Government is working towards.
What information will be pre-populated?
While there are practical limits to the completeness and accuracy of information that Inland Revenue can pre-populate, the expectation is that more than just information about PAYE or other taxes withheld at source will be added. Third-party information could be used to complete some income figures or simply allow Inland Revenue to personalise the prompts where further information needs to be added by the taxpayer.
Who is likely to get a pre-populated return?
It is likely that only individuals with an IRD number would receive a pre-populated return. An IRD number is an essential identifier that will allow Inland Revenue to match information gathered from third parties or other taxpayers (for example employers) to individual taxpayers.
Will pre-populated returns only be available digitally?Â
No, while digital channels are the most effective way of delivering pre-populated returns, the Governmentâ€™s vision for the delivery of digital services incudes providing alternatives for taxpayers that cannot manage their transactions digitally.