31 May 2016
Tax Transformation Bill passes third reading
A Bill aimed at simplifying and improving the settings for the administration of the tax system passed its third reading in Parliament tonight [Tuesday, 31 May 2016].
“Inland Revenue are currently implementing more customer-focused business practices and new technologies to make it simpler for people to complete their tax affairs and get them right,” Revenue Minister Michael Woodhouse says.
“Changes proposed in the Taxation (Transformation: First Phase Simplification and Other Measures) Bill are designed to support the earliest stages of the department’s business transformation reform.”
The Bill includes the simplification of tax rules for employees participating in employee share schemes, to allow employers to choose to withhold tax on an employee’s behalf as part of their PAYE return. Previously employees were required to file a separate tax return.
The Bill also removes outdated legislative requirements and simplifies certain administrative processes for taxpayers, including:
- allowing Inland Revenue to transfer a KiwiSaver member’s details to relevant fund providers when the member changes schemes,
- making better use of digital technologies by allowing documents, such as tax returns, to be filed with an electronic signature rather than in writing;
- halving the time that taxpayers with personal tax summaries have to wait for their refund, provided they meet a new refund threshold.
“These taxpayer-friendly measures will help set the groundwork for the continued modernisation of our tax administration system to ensure it is fit for purpose and meets the needs of modern taxpayers,” Mr Woodhouse says.