Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Chartered Accountants concerned by potential impact of bill

Chartered Accountants Australia and New Zealand (CA ANZ) fully supports the intent of new legislation opening the way to increase automation for taxpayers, but is concerned by a potential gap between policy intent and the day-to-day impact on Kiwi tax payers.

Automation will put many taxpayers directly in contact with Inland Revenue for the first time.

New Zealand Tax and Financial Services Leader for CA ANZ, John Cuthbertson said changes resulting from the legislation would mean 1.3 million New Zealanders having to actively engage with Inland Revenue. “That’s something many Kiwis would not have had to do for a generation.

“The devil is not in the legislation’s detail, but rather, in the implementation. For example, the first-time users will need support.”

CA ANZ this afternoon made an oral submission to the Finance and Expenditure Select Committee on the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill.

Speaking before the oral submission, Cuthbertson said “automating tax refunds will make life easier for both Inland Revenue and taxpayers. It will work for most taxpayers.

“But there may be practical issues for taxpayers who receive unusual additional income beyond their expected reportable income, including for example income from the sale of a property or income as a beneficiary of a trust.

“There will be a risk that taxpayers with changing circumstances will be pushed into a situation where the tax they have paid is different from what is actually owed.

“The challenge for Inland Revenue is to look after these people.”

Cuthbertson said CA ANZ was also concerned that proposals allowing Inland Revenue to instruct investment income payers to change a taxpayers’ resident withholding tax rate after 20 working days relied too much on taxpayer engagement and familiarity with the system.

Solutions

CA ANZ’s written submission on the Bill has a number of suggestions to avoid any “implementation gaps” including annual implementation reviews by Inland Revenue and reports to the Revenue Minister on the legislation’s effectiveness.

The Bill includes proposals to modernise and improve the legislative settings for tax system administration. It is part of the Government’s drive to transform the revenue system through IR’s Business Transformation programme which focuses on greater automation and digitisation.

“It is vital that the roll out of the next phase of Inland Revenue’s Business Transformation goes smoothly,” Cuthbertson said. “Automation will mean many taxpayers will soon be directly interacting with Inland Revenue for the first time. It is crucial that a range of education and communication channels are available to help these ‘first time users’ navigate the system, and their role within it.

“Applying key learnings from earlier Business Transformation phases will minimise foreseeable operational issues and maintain ongoing trust in the tax system.”

Cuthbertson emphasised CA ANZ strongly supported the Bill. “It just needs some support mechanisms.

“Challenges around implementation and operation need to be addressed to ensure the legislation worked as intended.

“Specifically there needs to be ongoing management and overview of progress.”

As well as automating individuals’ income tax returns, the Bill includes a number of positive proposals, including the extension of the Commissioner’s care and management powers which will assist the Commissioner in applying the law fairly and consistently.

A full copy of CA ANZ’s written submission on the Taxation (Annual Rates 2018 – 19, Modernising Tax Administration, and Remedial Matters) Bill can be found here.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why The Dice Are Loaded Against Women In Public Life

If they enter public life, women can expect a type of intense (and contradictory) scrutiny that is rarely applied to their male counterparts. If they are relatively young and conventionally attractive, such women will tend to be written off as lightweights – yet if they’re older and obviously competent, doubts will then tend to be raised about their “electability” and whether they are “warm” and “likeable” enough to connect with voters. Too conventionally feminine or not conventionally feminine enough? Too cold and too cerebral, or too warm and flighty to be seriously considered for high public office? For women in the public spotlight, the Goldilocks moments (when things are just right) are few and far between. More>>


 
 

PGF Kaikōura $10.88M: Boost In Tourism & Business

The Provincial Growth Fund (PGF) is investing $10.88 million to boost business and tourism opportunities in Kaikōura, Parliamentary Undersecretary for Regional Economic Development, Fletcher Tabuteau announced today. More>>

ALSO:

Whitebaiting: Govt Plans To Protect Announced

With several native whitebait species in decline the Minister of Conservation Eugenie Sage has today released proposals to standardise and improve management of whitebait across New Zealand. More>>

ALSO:

Education: Resource For Schools On Climate Change

New resource for schools to increase awareness and understanding of climate change... More>>

ALSO:

In Effect April: New Regulations For Local Medicinal Cannabis

Minister of Health Dr David Clark says new regulations will allow local cultivation and manufacture of medicinal cannabis products that will potentially help ease the pain of thousands of people. More>>

ALSO:


RNZ: New Year Honours: Sporting Greats Among Knights And Dames

Six new knights and dames, including Silver Ferns coach Dame Noeline Taurua and economist Professor Dame Marilyn Waring, have been created in today's New Year's Honours List. The list of 180 recipients - 91 women and 89 men - leans heavily on awards for community service, arts and the media, health and sport.
More>>

ALSO:

Gordon Campbell: On What An Inquiry Might Look Like

Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels