NZ Launches Tax Modernization Program

New Zealand's Revenue Minister, Todd McClay released two documents on 31 March 2015 setting out the nation's plans to modernize and simplify the tax system. The first document, Making Tax Simpler – a Government green paper on tax administration, aims to inform New Zealand taxpayers of the proposed initiatives and seeks feedback on the options. The second document, Better Digital Services, outlines proposals to expand the tax authority's use of online systems that would enable faster, more accurate, more convenient interactions with the Inland Revenue Department (IRD).

 

"Taxes are an important part of a well-functioning modern economy, but it's important that the costs imposed by taxation are kept to a minimum," McClay said. "The way we run the tax system must keep pace with the needs of taxpayers. We need to make tax simpler. We are already working with New Zealand software development companies on solutions to simplify and significantly reduce the amount of time businesses spend on tax compliance," McClay said. "A working group with 20 representatives from small, medium, and large software developers has been meeting since October last year to co-design how GST and PAYE information can be transferred to IRD in the future."

The Revenue Minister also pointed out that the IRD is working with Australian accounting firm MYOB and New Zealand-based software company Xero on exploring ways to simplify tax processes for small businesses.