Bill will introduce automatic tax refunds

A bill that will eliminate tax paperwork for hundreds of thousands of Kiwis was passed at first reading in Parliament.

The bill will simplify tax obligations and will no longer have to file a tax return. Inland Revenue will make tax refunds, or an invoice.

"The filing of a PTS is currently the only way for individuals to get a refund, but about 750,000 people do not follow. As a result, the Minister of Revenue, Stuart Nash, said: "They are running out of money, we want people to get their repayments automatically," he said in a statement before the first reading of the bill [19659004]. To complete a PTS in the future would only be necessary if more information was required by Inland Revenue.

The bill entitled "Annual Rates for 2018-19, Modernization of Tax Administration and Remedies" also amends the Tax Administration Act. Inland Re "

" It strikes the right balance between the prudent treatment of taxpayers' confidential information and improved customer service, "Nash said.

The bill will also bring a host of changes to the KiwiSaver retirement savings plan, which allows over 65s to join and adds new contribution rates of 6 and 10%.

Finance Minister Grant Robertson introduced the bill in the House in the absence of Nash. The main purpose of the bill was to make sure people got what they were entitled to, like Working for Families.

"The full benefit of the changes will be realized from the year 2021 when for the first time, people will be able to see a full year of pre-populated information for PAYE and all their investment income. . Most people will pay for what they need and get what they are entitled to for the rest of the year without having to do anything.

Paul Goldsmith, spokesman for National, said his party was in agreement with most of the provisions of the bill. "

" It's basically a bill on annual rates that sets the tax rate, and the tax rates are the same as last year. They were not the rates that would have been in place if this government had not removed the modest tax cuts that the previous national government had enacted in law before the government, "Goldsmith said.

"We will not support this bill on the basis of this change. "

Act and the Green Party supported the bill and it was sent to the Finance and Expenditure Committee.