Should the IRD scrap tax estimations?
Inland Revenue has today sent a letter inviting business owners to have their say on provisional tax estimations.
The letter questions if provisional tax estimations should be scrapped on favour of calculating tax as you earn. The letter says this is just one of many ideas the Government is seeking opinion on.
“At a time when you can use your cell phone to order a movie or buy a plane ticket, the Government thinks that Inland Revenue can do much more to make your tax simpler,” the letter states.
Inland Revenue says over the next couple of years the ministers of Finance and Revenue will be looking at ways to reduce the cost of doing tax, improve speed and make tax part of normal day-today business processes, claiming it wants feedback from business owners before any changes to the current systems are made.
The organisation says that accounting software could potentially exchange information directly with Inland Revenue so more accurate PAYE, GST and related information could provided automatically,
“With less time needed to fill out forms, provisional tax could be managed more like PAYE and calculated as you earn your income,” Inland Revenue says.
“Right now the Government wants your views on how technology can be used to make tax simpler,” the company says in the today’s letter. “You’ll find more ideas on the consultation website or in the discussion documents.”
Discussion on Better Digital Services – closes 15 May Discussion on the Green Paper for simpler tax administration – closes 29 May