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Tax modernisation programme launched

Tax modernisation programme launched


Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system.

“Taxes are an important part of a well-functioning modern economy, but it’s important that the costs imposed by taxation are kept to a minimum. The way we run the tax system must keep pace with the needs of taxpayers,” says Mr McClay.

“We need to make tax simpler. That’s why today I am launching public consultation to consider ideas for a tax administration for the future.”

Mr McClay launched the programme at a breakfast hosted by the Wellington Employers’ Chamber of Commerce.

“We need tax administration to be simple to use and new technology can help achieve that” Mr McClay says.

The first document, Making Tax Simpler – a Government green paper on tax administration aims to introduce New Zealand to the overall direction of the tax administration modernisation programme and seeks feedback on that direction. Consultation on that topic closes on 29 May 2015.

“This is an opportunity to stand back, look at our tax system as a whole and make changes that will simplify the system for the benefit of all New Zealanders. At the same time, we will modernise the technology that runs the tax system.” Says Mr McClay.

The second consultation document, Better Digital Services outlines proposals for greater use of electronic and online processes allowing faster, more accurate, more convenient interactions with Inland Revenue. Consultation closes on 15 May 2015.

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“We are already working with New Zealand software development companies on solutions to simplify and significantly reduce the amount of time businesses spend on tax compliance. A working group with 20 representatives from small, medium and large software developers has been meeting since October last year to co-design how GST and PAYE information can be transferred to IRD in the future. In tandem, IRD is working with MYOB and Xero on how we can simplify tax processes for small businesses.

“The scale of the change proposed for the tax administration is unlike anything we’ve contemplated before and the proposals contained in the consultations launched today will affect us all at some level.

“This is your chance to help us build a simpler tax system because a simpler system is a better system” Mr McClay says.

To make a submission or to read the full details of proposals, go to
www.makingtaxsimpler.ird.govt.nz


ends

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