Options Fairness Efficiency of compliance and administration Sustainability of the Basis for improved and tax and income- social and other equity related social policy government policy system Retain the status quo: Employers are required to act as the middleman The quality of contact To the extent that No date of between Inland Revenue and an employee when and identity information identity or contact information, contact identity cannot be confirmed and this imposes currently held in the tax information is incorrect details only from considerable compliance costs. system for employees is Inland Revenue and those in or eligible not sufficient to support other agencies will be for KiwiSaver and The current rules require employers to collect modernisation. unable to contact no ability for multiple forms from new employers for IRD and in taxpayers to offer employer to pass on some cases employers have to transcribe them and improved services. information already pass the information on to Inland Revenue. gathered from an employee. Incorrect IRD numbers and out of date contact details impose considerable administrative costs. Require date of Better Better than the status quo Significantly better than Significantly better than birth and contact than the the status quo the status quo. detail information status Option 2 requires the employer to source and/or for all new quo pass on additional information however for Obtaining date of birth Delivery of improved employees and employers payroll software the compliance information for new services is dependent enable employers to costs should be outweighed by being able to send employees and contact on sound identity and pass on information the information already gathered for their own details for all new contact information for already gathered. purposes from the payroll system and/or from employees will individual taxpayers reduced rework. contribute to the and this option should sustainability of the tax deliver improvements. Administrative costs will be reduced by better system. identity and contact information.
Options Fairness and equity Efficiency of compliance and administration Sustainability of the tax and income- related social policy system Basis for improved social and other government policy Retain the status quo: No date of information, contact details only from those in or eligible for KiwiSaver and no ability for employer to pass on information already gathered from an employee. Employers are required to act as the middleman between Inland Revenue and an employee when identity cannot be confirmed and this imposes considerable compliance costs. The current rules require employers to collect multiple forms from new employers for IRD and in some cases employers have to transcribe them and pass the information on to Inland Revenue. Incorrect IRD numbers and out of date contact details impose considerable administrative costs. The quality of contact and identity information currently held in the tax system for employees is not sufficient to support modernisation. To the extent that identity or contact information is incorrect Inland Revenue and other agencies will be unable to contact taxpayers to offer improved services. Require date of birth and contact detail information for all new employees and enable employers to pass on information already gathered. Better than the status quo Better than the status quo Option 2 requires the employer to source and/or pass on additional information however for employers payroll software the compliance costs should be outweighed by being able to send the information already gathered for their own purposes from the payroll system and/or from reduced rework. Administrative costs will be reduced by better identity and contact information. Significantly better than the status quo Obtaining date of birth information for new employees and contact details for all new employees will contribute to the sustainability of the tax system. Significantly better than the status quo. Delivery of improved services is dependent on sound identity and contact information for individual taxpayers and this option should deliver improvements.
2017-ris-areiirm-bill-5.docx