Tax Watch: Edition 5, August 2018

Proposed new legislation to make tax simpler for individuals

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Draft tax legislation has been introduced into Parliament with the aim of modernising the tax system and making tax simpler and easier for individuals.

The Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill (“the Bill”) forms part of Inland Revenue’s wider Business Transformation project. It builds on changes to the collection of employment and investment income information contained in other recent legislation.

The proposed changes will see Inland Revenue calculate the tax position of individuals who earn only employment or investment income. Refunds will be paid out automatically without the need to file a personal tax summary and Inland Revenue will contact individuals to inform them of any outstanding tax to pay.

In addition to the proposed changes for individuals, other flagship measures of the Bill include:

Get in touch with us today if you would like more information on how the proposed changes could affect you or your business.