After months of planning its new system update, Inland Revenue has now refunded more than NZ$80 million in its first two batches of automatic tax assessments. In its first week of operation, IRD issued almost 180,000 refunds, alongside 29,080 tax bills totalling $10.4m.
The total value of refunds paid out to New Zealanders so far is $83.3m, with more batches of assessments expected to continue each week until the end of July, 2019. This is the first year that IRD has implemented its new automated tax assessments, which are the result of a $1.6 billion Business Transformation project to simplify the tax system and update IRD’s internal technology.
Since the new system went live on April 26, 2019, it has handled 7.1 million logins to myIR, nearly 100,000 IR3 returns filed by individuals, more than 800,000 payday filing returns, and 366,218 GST returns. Despite claims from some New Zealanders that the new system is already showing flaws in its automated processes, IRD spokespeople are adamant the errors are both minimal and not reflective of the new system’s capabilities and benefits.
Advisory Accountants, a firm based in New Zealand’s North Island, advised New Zealanders of the upcoming changes earlier this year, highlighting scams offering fee-based tax-return services, and to make New Zealanders aware of the scheduled IRD closure. With main offices in both Wellington and Porirua, their team offer expert accounting advisory services to clients on a range of tax-related issues.
If you’re experiencing issues around changes to IRD or tax filing, inquire about New Zealand business tax advice services by visiting http://www.advisoryaccountants.co.nz/ or calling 04 499 6824 for Wellington and 04 237 6825 for Porirua today.