In the transformed tax administration, Inland Revenue’s interactions with tax intermediaries will need to be efficient and tailored, so they can positively influence compliance behaviour. The services that Inland Revenue will provide to intermediaries, as well as any risks to the integrity of the modernised tax system arising from tax intermediaries’ interactions with it, are under consideration.
The Government recognises the valuable role that tax agents and other intermediaries (such as payroll intermediaries and bookkeepers) have in influencing taxpayers’ compliance behaviour. Inland Revenue intends to offer more online self-service options to tax agents and other intermediaries.
The Government is therefore proposing to:
- expand the definition of tax agent to include a wider group of “tax intermediaries” who are in the business of acting on behalf of taxpayers in relation to their tax affairs
- separately define who will be eligible for the extension of filing time by reference to the existing definition of a tax agent
- provide the Commissioner with a discretion to refuse to recognise someone acting on behalf of another for a fee if they have been removed from the list of tax agents for tax integrity reasons, or if allowing them to act would otherwise adversely impact on the integrity of the tax system.