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New Zealand Sets Out Tax Admin Reform Plan

by Mary Swire, Tax-News.com, Hong Kong

01 June 2016


New Zealand's tax authority, the Inland Revenue, has been allocated NZD857m (USD583m) to transform the tax administration.

Budget 2016 invests NZD503m of new operating funding over the next four years and NZD354m of new capital funding for Inland Revenue's new tax administration system.

The program is expected to generate NZD284m of savings for Inland Revenue and NZD280 million in additional tax revenue from greater compliance. These savings will be used to provide further funding for the program, on top of the NZD857m provided in Budget 2016.

Revenue Minister Michael Woodhouse said: "It is important that our tax system keeps pace with changes in New Zealanders' expectations and changing business models. This investment will provide a modern, simplified tax administration system that meets New Zealanders' needs, reduces compliance costs for businesses, and helps people get their obligations and entitlements right first time."

"The tax system transformation will be designed around New Zealanders and their businesses, giving people greater ability to manage their tax affairs online."

"Businesses will find that meeting tax obligations will become part of their normal processes, rather than a separate activity. This will allow small businesses in particular more time to devote to their business rather than taxes."

"These benefits will be delivered by increased use of digital technology, through the development of Inland Revenue's new IT system."

"Inland Revenue's current system is 25 years old. We need to invest in a new tax system that can keep up with the changing demands of New Zealand's modern economy. These measures will deliver a modern tax system that will contribute to a healthy, growing economy, maintain a robust tax base, and distribute entitlements."

TAGS: compliance | tax | investment | small business | business | tax authority | New Zealand

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