Online tax options aimed at businesses

By RICHARD WOOD

The Inland Revenue Department is hoping to earn some quick wins from its five-year e-enablement plan.

The IRD's general manager for business development and systems, Colin MacDonald, said the main benefits would be for small business rather than individual taxpayers because 1.5 million people did not need to file tax returns anyway.

He said that through the internet the IRD could better target services, do more, and offer another choice in dealing with the department.

An early feature will be a secure email system for people to communicate with the department. Then will come the ability to pay GST online. An online GST payment system is being tested, with a full-scale introduction planned by January.

Tax can already be paid by internet banking with WestpacTrust and the ANZ. This will be expanded to Kiwibank, and the IRD expects all other major banks to have such a service in the first quarter of next year.

MacDonald said the department would also concentrate in the early stages on the electronic filing of income tax and fringe benefit tax.

These systems build on experience with the existing e-File and ir-File.

The e-File system allows tax agents to file income tax returns electronically and is used for 49 per cent of tax returns.

Ir-File enables employers' monthly PAYE schedules to be filed and is used for 1.4 million taxpayers.

"We're not starting from scratch. We're building on experience we already have and services we're already providing," said MacDonald.

Downloadable tax forms will be replaced by electronic filing systems.

And by October next year the department plans to offer password access for individual taxpayers to view their accounts.

MacDonald said priority was also being given to providing calculator tools and reminder systems.

He said no specific budget had yet been allocated to the projects beyond normal operational budgets.

"When they are initiated they will go through the normal cost-benefit analysis process and they'll need to stack up."