Back to Making Tax Simpler

More information would be provided to Inland Revenue

Scroll To Questions

 Payers of investment income will need to provide the following information to Inland Revenue:

Payer of investment income Information that will be required in the future Information already provided that will continue to be required

Banks and other payers  of interest

Date of birth information (if held).

For recipients of income exempt from withholding tax or income subject to the approved issuer levy (AIL) – the taxpayer’s name, address and IRD number (if held), as well as the income paid.  Having this information would allow Inland Revenue to check that the recipients were entitled to claim exemptions and, if not, to use the information to prepopulate returns, or whether the payment of AIL was appropriate.

Banks already provide the following information about individual taxpayers who are not exempt from RWT or have income subject to AIL:

  • The income earned
  • The tax withheld
  • The taxpayer’s name, address and IRD number (if held).

PIEs

Date of birth information (if held).

Like banks, PIEs already provide individual taxpayer information regarding income earned, tax withheld, and the taxpayer’s name, address and IRD number (if held).

Companies

Date of birth information and IRD number (if held) as well as the taxpayer’s name and address.

Information about individual taxpayers regarding income earned and tax withheld, including any imputation credits attached to dividends.  Currently Inland Revenue only receives summary information from companies (i.e. total dividends paid and tax withheld for all taxpayers, not broken up by taxpayer).

Only summary information is provided.

Maori authorities

Date of birth information and IRD number (if held) as well as the taxpayer’s name and address.

Same as companies, except instead of dividend and imputation credit information, information will be required on Māori authority distributions and any Māori authority credits attached to those distributions.

Only summary information is provided.

The above table shows the information that is already provided by investment income payers, and the information that is proposed to be required in the future.

The additional information required is already held by payers and provided to investors through year-end interest certificates, shareholder dividend statements, Māori authority distribution statements and PIE investor statements.  Therefore requiring it to be provided to Inland Revenue isn’t expected to increase compliance costs significantly.

Obtaining date of birth information will enable Inland Revenue to more easily confirm the identity of taxpayers who don’t declare their IRD numbers.

Tell us what you think

Scroll To Top