myIR, payments and more
We're supporting customers with new GST online services introduced in February 2017, and planning the next stage of improvements to income taxes.
Stage 1 of transformation went live in February 2017 introducing new GST online services. New migrants and organisations can now register online for a new IRD number and we now recognise New Zealand Business Numbers when customers contact us. The introduction of these new services, which are now operating on the new revenue system, was the first step in making it simpler for customers to manage their tax and interact with Inland Revenue.
Transformation Stages 2-4 will build on Stage 1 and introduce more streamlined processes for businesses and individuals. The transformation has been designed in a logical sequence so, as new policies and online improvements are introduced, tax will over time become simpler and more certain for customers.
Using technology and information in smarter ways will give Inland Revenue a better view of a customer’s tax situation so they can help customers to get their taxes right from the start, rather than when things go wrong.
Stage 2 of the transformation involves streamlining personal and business income taxes. Small businesses will benefit from a fourth option for paying provisional tax, AIM (Accounting Income Method). From April 2018, businesses can choose to use AIM through their accounting software to pay their provisional tax as they go, matching the way their business receives its income. AIM will offer more certainty around provisional tax, and reduced compliance costs.
We are working with the software industry to create a seamless process for businesses to manage their taxes from their accounting software as part of their everyday business administration. Many businesses are now filing their GST returns through their accounting software which saves them a significant amount of time.
Changes are proposed to PAYE, including filing directly from software and via myIR, to further integrate tax obligations into a business’s regular payroll processes. These changes are designed to further reduce compliance costs and will create a foundation for future changes to social policy.
A revenue system centred on customers
An extensive engagement and change management programme is underway with customers, tax professionals, banks, software developers, businesses, industry groups and other government agencies. We're continually monitoring customer feedback to ensure that the new tax system will truly meet the needs of our customers now and for the future generations.
As we roll out each stage of improvements, affected customers will receive direct communications from us so they are ready to get the most out of the new services.
Three external advisory groups are bringing an external voice from individuals and business communities.
Contact us at IRtransformation@ird.govt.nz
Public consultation on policy
Some of the changes being introduced are subject to new legislation that the Government has signalled in their consultations on Making Tax Simpler. If you are involved in planning your business's future strategy and systems, we encourage you to read the Government's proposals to make the New Zealand tax system simpler. You can find these at the Making Tax Simpler website.
To date the Government has consulted on:
- Green paper on the vision of tax administration (March to May 2015)
- Better digital services (March to May 2015)
- Better administration of GST and PAYE (November 2015 to February 2016)
- Towards a new Tax Administration Act (November 2015 to February 2016)
- Better Business Tax (April to May 2016)
- Investment Income Information (July to August 2016)
- Proposals for Modernising the Tax Administration Act (December 2016 - February 2017)
For more information about the consultation programme and public feedback on past consultations go to the Making Tax Simpler website. You can follow the progress of policy decisions at taxpolicy.ird.govt.nz and the progress of legislation at www.parliament.nz
The phased implementation of our business transformation offers many opportunities for New Zealand and international businesses. Throughout the life of the programme we'll be looking for a range of suppliers with suitable capabilities to be involved in specific aspects of the wider change programme.
Current tenders are available through the Government Electronic Tenders Service (GETS).