Better Public Services Result 9 - Case Study: Making Tax Simpler - Stage 1 goes live
In February 2017 Inland Revenue delivered the first stage of its business transformation by moving GST services onto a new revenue system.
Inland Revenue’s transformation is re-shaping the way it works with customers, including improvements to policy and legislation. These changes are being introduced in four separate stages.
The change programme will modernise New Zealand's tax service to make it simpler and faster for New Zealanders to pay their taxes and give more certainty that they'll receive their entitlements. Businesses and tax agents are already benefitting from simplified functions for managing their GST.
Changes customers are seeing as part of Stage 1
Some of the changes customers are seeing are in a new section in myIR, Inland Revenue’s secure online services, called ‘My GST’. They can do some new things including:
- Arranging their GST payment at the same time as they submit their return, by authorising a direct debit from their bank account or using their Visa or Mastercard credit or debit card. There's no need to make a separate payment by internet banking. They can also schedule the payment for the due date.
- Requesting an amendment to an already filed GST return, making it easier and quicker to do.
- Choosing to receive email and/or text message reminders when their GST return and payment is due to late to avoid penalties.
- Tax agents can bulk-file clients’ GST returns, access clients’ GST information, request amendments, set up payment plans and much more.
Businesses can now use their NZBN as a unique identifier when contacting Inland Revenue. New migrants can also register online for an IRD number, making it faster for them to be work ready.
How Stage 1 changes are making tax simpler for customers
Tony has made a mistake in his GST return. In the past he would have to call or write to Inland Revenue to request an amendment, which could be a lengthy process. Now he can amend the return in his myIR account. Where possible Inland Revenue will confirm his changes are accepted while he’s still logged on.
Lina wants to pay off her GST debt, but can’t pay it in full. In the past she would have called or written to Inland Revenue and ask to set up a payment plan. Now Lina can do this online herself, and will receive an immediate message either telling her that her proposal has been accepted, or that she’ll be contacted within three days.
Stage 1 builds on earlier changes
Each stage of the transformation has been designed so that benefits accumulate at each stage. In Stage 1, Inland Revenue built upon earlier changes that allow businesses to manage their GST through accounting software. Over time, more tax functions will be available through accounting and payroll software. This will include AIM, the new accounting income method that will allow small businesses to pay their provisional tax ‘as they go’.
Future stages will continue to make tax simpler, more open and certain for customers by streamlining individual income tax, further business taxes, and social policy administration.
Find out more about Inland Revenue’s GST related change www.ird.govt.nz/gstonline
Find out how tax could get easier for small businesses www.changingforyou.ird.govt.nz.
Find out more about how tax is being made simpler www.makingtaxsimpler.ird.govt.nz
Find out more about Inland Revenue’s transformation www.ird.govt.nz/transformation
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