Red tape reduced around tax rebate claims
Hundreds of thousands of taxpayers stand to benefit from a government decision to remove the deadline on applications for rebates on charitable donations and on payments for housekeeping and childcare.
The change will apply in 1999-2000 and future income tax years and will be included in the taxation bill now before the Finance and Expenditure Select Committee.
"The effect will be that people will now have eight years in which to file their claims, the same period as applies to refunds for overpaid tax," Revenue Minister Michael Cullen said.
"It also means that those who missed out on claiming their rebates for the 1999-2000 year will now be able to do so.
"It is expected that around $14 million more in rebates will be claimed each year than under the current six month time limit. Taxpayers and their agents will also benefit from a reduction in compliance costs.
"The issue arose when the need to file an IR 5 return was abolished. A simpler process was introduced at that time for the housekeeper/childcare and charitable donation rebates but still many people did not exercise their entitlement," Dr Cullen said.
Contact: Patricia Herbert [press secretary] 471-9412 or 021-270-9013: email [email protected]