The Inland Revenue Department continues to issue proposals for business transformation, with the latest proposals focusing on the reporting of investment income information. Payers of interest and dividends, portfolio investment entities (PIEs) and Maori authorities would be required to report investors’ income and tax details more frequently, and more investor details would be provided.
This information then would be used by Inland Revenue to pre-populate investors’ tax returns—to simplify the return process and to adjust tax rates and social assistance entitlements and obligations. This would minimise year-end refunds and payments. While this would require more time, cost, and systems for those having to provide the information, there could be an opportunity for them to promote an approach that uses existing reporting systems and rationalises their interaction with Inland Revenue to reduce this cost. For investors, there could be concerns regarding the level of detail provided to Inland Revenue, and what happens if the wrong information is provided.
Read a July 2016 report [PDF 350 KB] prepared by the KPMG member firm in New Zealand: Investment income reporting in an IT world
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