(ANZ, Corporate Taxpayers Group, Chartered Accountants Australia and New Zealand, New Zealand Bankers Association, KPMG) Submitters support the removal of the requirement to provide annual withholding tax certificates where the taxpayer has provided their IRD number, but consider a significant benefit will not result from this as financial institutions already have the systems in place to provide these certificates and are likely to continue to do so. (ANZ, Corporate Taxpayers Group, New Zealand Bankers Association, KPMG). Submitters have concerns with the removal of this requirement as it does not address the implications of taxpayers having to verify year-end tax position. For example, verification of the allocation of income from jointly held investments may be problematic without a year-end certificate. (Chartered Accountants Australia and New Zealand, Corporate Taxpayers Group) Comment the requirement to provide annual withholding tax certificates will be removed, this does not prevent payers of investment income continuing to provide these certificates to their customers if they are concerned about their customers being unable to verify their year-end tax position. Recommendation That the officials’ comments be noted. Issue: Streamlining information reporting Submission (KPMG) Consideration should be to how provision of investors’ identity information to Inland Revenue could be streamlined, such that only information that is in nature for “variable” – example, tax rate, the amount of investment income and tax deducted is required to be – transmitted periodically. Comment Large payers of investment income will be required to provide all the required information with each report as they will be providing this information in specialised files. For smaller payers of investment income, Inland Revenue will pre-populate online forms with variable information such as the name, date of birth and IRD number of the taxpayer that has been provided by the payer in previous returns. Recommendation That the officials’ comments be noted.
(ANZ, Corporate Taxpayers Group, Chartered Accountants Australia and New Zealand, New Zealand Bankers Association, KPMG) Submitters support the removal of the requirement to provide annual withholding tax certificates where the taxpayer has provided their IRD number, but consider a significant benefit will not result from this as financial institutions already have the systems in place to provide these certificates and are likely to continue to do so. (ANZ, Corporate Taxpayers Group, New Zealand Bankers Association, KPMG). Submitters have concerns with the removal of this requirement as it does not address the implications of taxpayers having to verify year-end tax position. For example, verification of the allocation of income from jointly held investments may be problematic without a year-end certificate. (Chartered Accountants Australia and New Zealand, Corporate Taxpayers Group) Comment the requirement to provide annual withholding tax certificates will be removed, this does not prevent payers of investment income continuing to provide these certificates to their customers if they are concerned about their customers being unable to verify their year-end tax position. Recommendation That the officials’ comments be noted. Issue: Streamlining information reporting Submission (KPMG) Consideration should be to how provision of investors’ identity information to Inland Revenue could be streamlined, such that only information that is “variable” in nature – for example, tax rate, the amount of investment income and tax deducted – is required to be transmitted periodically. Comment Large payers of investment income will be required to provide all the required information with each report as they will be providing this information in specialised files. For smaller payers of investment income, Inland Revenue will pre-populate online forms with information such as the name, date of birth and IRD number of the taxpayer that has been provided by the payer in previous returns. Recommendation That the officials’ comments be noted. variable
2018-or-areiirm.docx