What to know about the IRD’s new automatic tax assessments

08

Jul

From 20 May 2019, Inland Revenue has begun to automatically assess the 2019 tax position for over 380,000 tax-paying individuals. These assessments are a part of the IRD’s business transformation program, which aims to modernise and streamline the process of New Zealand’s tax system.

These new assessments will finalise the end-of-year information for the annual tax year ending 31 March 2019. Individuals that are affected will be those that have a reportable income only, such as salary or wages, interests or dividends, and NZ super. The end-of-year assessment uses employer and bank information to show you how much you’ve earned and how much tax you’ve paid, as well as providing you with a tax calculation. Individuals with a myIR account will be notified when their tax assessment is ready to view.

Upon receiving an automatic tax assessment, you should check it immediately as the IRD will need to be informed of any discrepancies or income that is not shown in the assessment. You will have until your terminal tax date to do this, which is 7 February 2020, or 7 April 2020 if you are using a tax agent.

No further action is needed for tax assessments that are correct, as the IRD will automatically pay any refund directly into your bank account within 48 hours of the assessment completion. In cases where tax is owed, Inland Revenue will confirm the amount that is owed and the due date. There will be a range of payment options available to individuals, including payment plans.

In cases where you have other sources of income, do your own tax return, or are self-employed, then you should not receive an automatic assessment and will still need to file your own income tax return. Consulting a tax advisor for further assistance may be helpful in these circumstances.


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