New Zealand’s Inland Revenue continues to make good progress in updating their antiquated tax systems. However, for some of us that find it hard to let go of the excitement of getting a cheque in the mail, there is some bad news.
This latest announcement impacts on you if you are required to account for New Zealand GST.
The first change, which kicks in from 7 February 2017, is that GST refunds will now be paid electronically. There will be no more New Zealand GST refund cheques issued.
Therefore, it is important that Inland Revenue have your current New Zealand bank account information. They will not transfer funds into overseas bank accounts.
When we complete New Zealand GST returns for clients we will include a reminder for you to let us know your New Zealand bank account so we can make doubly sure that any GST refunds won’t be held up.
If you have access to an IRD myIR account, you will be able to update bank account details yourself.
In implementing such significant changes Inland Revenue has announced the system will be down over the Waitangi Day weekend.
In order to put these improvements through and give them a thorough testing, Inland Revenue has advised that their online service will be down from 1 PM Thursday 2nd February until 6 AM Tuesday 7th February (NSW time).
During that time you will not be able to access your myIR secure online service or contact Inland Revenue through their various call centres.
Using Inland Revenue’s myIR online system has a number of advantages.
If you can’t meet a New Zealand GST payment, you can use the system to arrange an instalment plan online without having to confess your sins to a human being.
In most cases you will even receive immediate confirmation and approval. You can also choose to receive email message reminders when your GST return and payment is due, which can help avoid late payment penalties.
The information in this article is indicative of NZ tax rules and changes and not intended to be complete for all intents or purposes and does not constitute advice. It is recommended that you obtain professional advice, suited to your particular circumstances, from us before acting on anything you read.