IRD rolls out new MyIR for GST
By Phil Barlow - 14 March 2017
The launch of the first major stage of Inland Revenue’s business transformation programme went live over Waitangi weekend 2017.
This solely dealt with GST and involved the migration of:
- 8.5 million taxpayer records
- 800,000 GST accounts
- 8.1 million GST returns
- $80 billion of GST payments history
- $36 billion of disbursements history
Clearly this was a significant task and on a scale that would
not often be seen in NZ.
At the user end, the migration appeared to go without a hitch as
taxpayers and accountants were able to log on and immediately use
the new GST MyIR system.
As it stands however, due to the progressive nature of the
rollout onto the new IT systems, there are some inefficiencies now
present that are largely caused through a very old and very new
system not being able to integrate. These issues are not ideal from
a users perspective but it seems cannot be avoided given the
constraints the Inland Revenue are working with.
The Inland Revenue has acknowledged there are a number of issues
that users have identified while using the new system in a real
environment. These issues are being prioritised however some of
these will not be resolved until Stage 2, when other taxes (i.e.
income tax), also transfer onto the new IT platform.
To their credit, the Inland Revenue has been proactive in
engaging their staff to communicate and contact taxpayers through
various means, phone calls, emails, and visits to agents. There
will no doubt be learnings they can take away from the roll out of
the GST MyIR system.
For taxpayers and agents, this signals significant changes for
the administration of the tax system in NZ. The benefits of the new
system include more functionality for taxpayers and agents and some
automation of the more mundane tasks.
Clearly the new IT systems will provide the IRD the ability to
deal with matters more easily in real time. In addition there will
be far more transparency and over time, more information made
available to the IRD.
As the saying goes however, 'rubbish in equals rubbish out'.
Therefore, the onus will be on taxpayers to get things right at the
front end and to regularly liaise with their accountants during the
year to ensure everything is accurate and on track.
Please contact Phil Barlow or one of the team at Hayes
Knight if you would like to discuss this further.