Final update: April changes 30 March 2020 Tax Agents and Bookkeepers This content is correct as at 24 March 2020; it is subject to change UNCLASSIFIED 1
Welcome to our webinar Trish Spence-Manning External Relationship Manager IN CONFIDENCE Greetings everyone, and welcome our webinar. My name is Trish Spence-Manning and I am an External Relationship Manager at Inland Revenue, working with tax intermediaries and professional bodies from around the country. Today’s webinar is all about the next round of improvements in our transformation, and how they’ll affect you and your clients. For those of you who have seen our webinars, some of today’s content will be pretty familiar and we’ll recap some of the information. There is also some new content and screenshots. Just a quick note, the content of this webinar is correct as of 24 March. Some details may change. Before we start, let’s go over a few house keeping notes. 2
How to participate Slides Presenter info IN CONFIDENCE I’d like to run through what you should be seeing on your screen, and how to interact with us. In addition to the presentation slides on your screen you’ll see a small control panel at the bottom of your screen that contains a few buttons. When you click on each of these buttons, you’ll see they either open or close some of the features which may already be open on your screen. On the left of your screen you’ll see the slides box on which you’ll see the presentation slides. You should also see a Q&A box on your screen. By clicking in this box – in the “enter your question” section, you can send through any questions. Other participants won’t be able to see your question but they will come through to us. We will collate all questions, get them answered and send them out to all participants via email so it is important to send questions through. 3
Responding to COVID-19 • Essential services - our priority • Contact us online and through myIR • Business Continuity Package tax relief and income assistance - ird.govt.nz/Updates/News- Folder/tax-relief-coronavirus • Other tax relief for businesses - ird.govt.nz/covid-19-novel- coronavirus/tax-relief/tax-relief-for- businesses IN CONFIDENCE In these extraordinary circumstances, ensuring people get their entitlements, including their COVID- 19 relief, is an essential service and Inland Revenue’s top priority. We are now required to operate very differently, including how we work with you, our tax agent community. Our phone services will be severely limited and the only effective way to contact us, will be online and through myIR. Within Inland Revenue, all front office services in all localities are now closed and all of our staff, except a small number of special exceptions, will be working from home. Inland Revenue remains committed to implementing the latest round of our transformation changes in April. Maintaining the pace of IR’s transformation is important and any delay increases the risk that we won’t be able to meet customers’ needs at this difficult time. By moving to the new platform (START) in line with our current plan, we increase our agility to respond swiftly to situations such as Covid-19 which gives the Government more flexibility to help New Zealanders. Please be assured that the people who work at Inland Revenue will be doing their very best to make sure all New Zealanders get what they need as soon as they need it. That is our top priority. We will be providing more detail on things you need to know as this situation develops. You can find current information at ird.govt.nz/covid19 Business continuity package . On Tuesday 17 March 2020 the NZ Government announced a Business Continuity Package to help those struggling with the economic impact of the COVID-19 coronavirus pandemic. 4
To find our more please visit www.ird.govt.nz/Updates/News-Folder/tax-relief- coronavirus Our normal options for re-estimating provisional tax, setting up instalment arrangements, remitting late payment and filing penalties, and severe hardship debt write-offs are available. We encourage impacted businesses to take advantage of them. To find out more about further proposed tax changes to help businesses with the impact of COVID-19 go to https://www.ird.govt.nz/covid-19- novel-coronavirus/tax-relief/tax-relief-for-businesses If you have clients who are struggling due to the impacts of COVID-19 coronavirus, we strongly encourage you to contact them to discuss how we might be able to help. 4
Why we’re transforming tax administration IN CONFIDENCE It’s important to remember that these changes are part of the broader transformation of our revenue system. So before we get into the detail, let’s just briefly revisit the reasons behind the transformation. Some of you may have seen these next slides before. Inland Revenue’s transformation is a major government investment to make tax and payments simpler for New Zealanders. Everything continues to be in the mix – government policy, streamlining our processes and re-organising Inland Revenue so that we have the right people with the right skills closest to the customer. This transformation will make tax and payments simpler for New Zealanders by: increasing voluntary compliance by having a simpler tax system • reducing compliance costs for customers, particularly small businesses • making it easier and less costly for Government to introduce policy change. • The benefits we’ve committed to include: customers will find it easier to meet their obligations and receive their • entitlements there will be a reduction in compliance costs for our customers • the revenue system will be simpler and more resilient • time and cost to implement (policy) changes will be significantly reduced • 5
Our transformation 2016/17 2017/18 2018/19 2019/20 2020/21 Stage 1 Stage 2 Stage 3 Stage 4 Enable secure Streamline ta x Streamline social policy Complete the future digital services revenue system Release 3 – April Release 1 – Feb Release 2 – April Release 4 – April Release 5 – April 2019 2017 2018 2020 2021 Making it easier to Making it easier to Making it easier to Making it easier to Making it easier to manage GST: manage: manage: manage: manage: ▪ income tax ▪ file and pay at ▪ withholding taxes ▪ KiwiSaver ▪ Child support ▪ provisional tax same time ▪ fringe benefit tax ▪ Student loans ▪ Paid parental ▪ imputation ▪ amend previous ▪ gaming machine ▪ Investment income leave ▪ Working for returns duty information reporting ▪ Duties Families ▪ set-up instalment ▪ Wine equalisation (mandatory) ▪ Unclaimed arrangements and tax (WET) ▪ New R&D Tax monies direct debits ▪ Payday filing Incentive (mandatory) ▪ AIM (provisional ▪ Short process rulings ▪ Customers can ▪ NZ Business tax) ▪ Reduce PAYE ▪ Income equalisation see all their info electronic filing Number ▪ Automatic in one place threshold recognition Exchange of Further changes for ▪ Changes for ▪ Changes to ▪ Digital registration Information employers: WfFTC investment income for migrants and ▪ Payday filing ▪ Single employer information company entities (voluntary) account reporting ▪ Coordinated (voluntary) and approach to KiwiSaver notifications IN CONFIDENCE Transformation has gone from being a high-level plan at the end of 2015 to reality. It is being implemented in four broad, over-lapping stages – digital services, tax, social policy and a final wrap up. The systems, processes and legislative settings that support taxes and entitlements are being modernised in a series of releases within these stages. Major releases are occurring every year from 2017 to 2021, each one aligning with the beginning of the tax year in April. This is now well underway, with the first three releases having been implemented. The previous set of changes – Release 3 – went live a year ago. This was the largest BT release to date. We acknowledge that it had a significant impact on tax agents and bookkeepers due to the introduction of new legislation, new systems and a new website. We are now implementing Release 4. It covers a range of changes including: PAYE will be fully administered in our new system • Electronic and more regular reporting of investment income becomes • mandatory We introduce an electronic RWT exemption register • The administration of student loans is simplified and more automated • There are some changes around the Working for Families Tax Credits • We’ll cover these, and more, today. 6
What we’ll cover today 1. Temporary shutdown 2. Income tax (annual returns, automatically issued assessments) 3. Changes for employers 4. Investment income 5. Prescribed Investor Rates 6. Working for Families Tax Credits 7. Student loans 8. KiwiSaver 9. Changes to E-File 10.Other changes 11.Next steps and more information IN CONFIDENCE We’ve broken then information into eight sections. So, here’s what we’ll cover today: 1. Temporary shutdown 2. Income tax (annual returns, automatically issued assessments) 3. Changes for employers 4. Investment income 5. Prescribed Investor Rates 6. Working for Families Tax Credits 7. Student loans 8. KiwiSaver 9. Changes to E-File 10. Other changes 11. Next steps and more information During this we’ll be looking at changes to myIR. There are a number of things we won’t cover in detail but we’ll point you to some great online resources to help you, including previous webinars and the tax technical website. 7
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