Week-long IRD closure will result in simplified tax system for Kiwis

Thursday 2 May 2019, 12:18PM
By Media Giant

Inland Revenue offices were closed to the public between April 18 from 3 p.m. and 8 a.m. April 26, with IRD warning any partially completed online tax returns and messages saved in draft on the website would be removed when the shutdown began.


The decision for IRD to close its call centres and the online myIR services for a week is a key part of its NZ$1.6 billion Business Transformation project. Inland Revenue says that, as a result, they will begin automatically issuing 1.7 million annual tax refunds and about 115,000 tax bills.


Behind the scenes of the change is a need to update out-of-date software, as IRD is gradually retiring its aged mainframe-based computer system - First - which uses Cobol software, identified as being increasingly difficult to maintain through updates and ongoing support.


The benefits, according to numerous reports from the IRD, will be a simplified tax system and easier end-of-year returns for Kiwis. Taxpayers will be taxed more accurately through the year, resulting in much smaller end-of-year adjustments. However, this isn’t great news for IRD employees, with Inland Revenue projected to trim around 1,500 jobs by the year 2021.


Advisory Accountants, a firm based in New Zealand’s North Island, has advised New Zealanders of the upcoming changes in recent news updates, highlighting the new IRD changes and tips to avoid individuals attempting to scam taxpayers by offering fee-based tax-return services.


The business has main offices in both Wellington and Porirua, and offers expert accounting advisory services to clients operating in all types of business. If you’re concerned about upcoming changes to payday filing, and require business tax advice in New Zealand, visit or call 04 499 6824 for Wellington and 04 237 6825 for Porirua to make an appointment with one of the team today.