The IRD are making changes to the way tax refunds and payments are processed. In this blog Diprose Miller takes a look at the changes and what this means for individuals.
We’ve seen recent publicity around Inland Revenue’s decision to automatically generate both refund and payment assessments for non self-employed people from April next year. The IRD calculations will be based on information provided by employers and banks, and it is expected that more than 100,000 New Zealanders will receive a tax bill for the first time.
Those who have had the correct rate of tax deducted from their employment and investment income should find that there are no surprises. The intent of the change is that people who have not paid the correct rates should be charged (or receive a refund) to bring them into line with everyone else. It is also expected that the Woo-Hoo-type tax refund business will effectively be made redundant by this change, as the work they had been doing will now be done automatically by Inland Revenue.
The team at Diprose Miller is pleased to see the IRD using technology to simplify things for New Zealanders and make sure everyone is only paying what they need to. No doubt we’ll see a few teething problems with the new arrangement, and we will help our clients through the changes if needed. Overall it makes sense to us that everyone should pay the correct amount if the technology is available to make this happen.
If you have any questions around how the changes may affect you, please get in touch with your accounting team.