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Govt wins praise for tax system change

NZ Newswire logoNZ Newswire 5 days ago

Judith Collins. © Reuters Judith Collins. The government's plan to no longer require tax returns from people whose only income is from salary, wages or investment in order to claim refunds or calculate extra tax has been praised by the Taxpayers' Union.

Revenue Minister Judith Collins made the announcement on Monday and released a discussion paper for public feedback.

She said many people might be owed a refund or have tax to pay without realising it.

Under the new system, IRD will calculate and issue refunds, or let people know they have tax to pay without taxpayers having to do anything else.

Taxpayers' Union executive director Jordan Williams says IRD officials would have preferred every working New Zealander to file an annual tax return.

"There was a very real risk... if officials got their way the tax system would be made more, not less, administratively burdensome," he said.

"It appears the cabinet has overruled the tax mandarins and opted for the rights of taxpayers over bureaucratic preferences."

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