Having a more complete view of an individual’s investment income during the year will help Inland Revenue to ensure that people pay the taxes they should and receive the payments they are entitled to.
Receiving information about individual taxpayers during the year, rather than at the end of the year, means Inland Revenue will be able to:
- More accurately pre-populate tax returns and personal tax summaries. This will save taxpayers time and reduce errors.
- More accurately determine social policy entitlements, reducing the number of people paid too much during the year and then having to pay it back, and the number paid too little and only receiving their full entitlement at the end of the year.
- Proactively correct errors and help customers choose the right withholding rate.
- Prevent duplication – taxpayers would no longer need to provide information to Inland Revenue that Inland Revenue also receives from payers of investment income.
- Allow the Government the flexibility to review the administration of the social policies that Inland Revenue administers.