- Government tax policy work programme
- Payday filing
- Business transformation
2019 Government tax policy work programme
We can expect the Tax Working Group report recently presented to Parliament to largely shape the tax policy work programme in 2019. While an extension to income from capital (a capital gains tax) has been the most hotly contested and debated item over the past year, this may not be the first discussion document to be released given the high levels of complexity involved. Instead, we may see more manageable items, such as environmental tax or business taxes, first up for consultation.
CA ANZ has strongly advocated for Parliament and officials to consider the timeframes required to consult fairly on the recommendations and have urged against cutting corners to expedite the legislative process. We would like to see improvements to the integrity of the tax system, particularly through a review of tax policy frameworks and process, and to consult on a recommendation to implement a taxpayer advocate service.
The 2018-19 tax policy work programme has been largely completed, with consultation on research and development tax credits, various GST matters, and ring-fencing of rental losses.
What we are likely to see shortly is further work on the hidden economy and contractor and small business compliance following increased funding in the 2018 Budget. A focus on international tax and the digital economy is likely to increase as several international jurisdictions attempt to address the globalised economy, and the digital economy has been tipped as a budget priority in the May 2019 Budget.
While the most recent ‘Inland Revenue Satisfaction Survey of Members’ shows that member awareness and client readiness for business transformation changes have increased, these developments were still the biggest challenge members face in the next 12 months. IR is expected to switch income tax to its new Start system in April. Changes to the automation of tax refunds will take effect at the same time and many taxpayers will find themselves in direct contact with IR for the first time. These changes are likely to put pressure on IR’s systems. Taxpayers and tax agents will need to ensure information being received from and provided to IR is accurate.
2018 IR Satisfaction Survey
Read what other members identified as the biggest challenges in 2019Find out more
New Zealand Tax Reform in 2019
What’s changing in the tax landscapeRead more
Pay day filing
If you handle your businesses payroll, or manage the payroll requirements of your clients, it’s important to be aware of the changes to payday filing that are compulsory from 1 April 2019.
The intention is to simplify processes by integrating with existing payroll process and removing the 20th of the month reporting. Instead of an employer monthly schedule (IR348), employment information must be filed every payday. You can submit payday information via compatible software or through MyIR. If you currently file paper-based information, you will be able to continue to do so only if your annual PAYE/ESCT is less than $50,000.
CA ANZ urged Inland Revenue early in the consultation process to ensure compliance burdens were not shifted to the taxpayer. However, we recommend reviewing software and processes ahead of the cut over to ensure the process goes smoothly.
Inland Revenue resources on payday filing
Checkout Inland Revenue’s resources to make sure you’re ready for 1 AprilFind out more
Compliance costs and payday filing
CA ANZ, our members and Inland Revenue discuss potential compliance costsRead more