Business Transformation: Bill to simplify tax system passes first reading

A bill aimed at preparing the way for a simpler and more modern tax administration system passed its first reading in Parliament today.

Revenue Minister Todd McClay says changes proposed in the Taxation (Transformation:  First Phase Simplification and Other Measures) Bill are part of the staged roll-out of Inland Revenue’s Business Transformation programme, which, over time, will reform the department’s business practices and modernise our tax system.

“The bill includes measures to help prepare the way by removing some of the current legislative obstacles towards making New Zealand’s tax administration simpler and more certain for taxpayers,” Mr McClay says.

“That includes proposals that will allow modern electronic communication technologies to be used in place of current paper-based requirements for certain Inland Revenue communications with taxpayers and tax agents.

“Other measures are aimed at simplifying the tax rules to make taxpayers’ lives easier, such as making the current rules for employee share schemes less onerous for employees participating in those schemes,” he says.

“Further provisions, such as changes to allow earlier tax refunds for taxpayers with personal tax summaries that meet the automatic refund threshold, are intended to refine certain interactions between Inland Revenue and taxpayers, make them more efficient, and deliver better service to taxpayers.

“These and other measures proposed in the bill will help open the way for a modern tax administration system that will make it easier for people to get their tax right,” says Mr McClay.

The bill has now been referred to the Finance and Expenditure Committee for consideration and public consultation.