NEW TAX RETURN RULES FOR INDIVIDUALS
Individuals will just be required to check that whether their account with IRD is complete or not. It is propounded that Inland Revenue will automatically fill in all the information which Inland Revenue has collected into the individual’s account. For the purpose of new rules, individuals are categorised into following broad categories:
Individuals earning Reportable Income
Reportable income is the income about which inland revenue receives information from the source. For e.g.: Employers providing Wages & salary information of their employees by filing Paye returns and financial institution providing information about interest earned and RWT. Inland Revenue will pre-populate the individual’s account with the information so held and following this assessment will arise at the earlier of either
- Individual confirming the information so held by IRD is correct, or
- Commissioner notifies the individual that he/she is satisfied that information is complete and correct.
Following this the individual will be considered as having made a return of income and completed the self-assessment. Tax refunds, if any, will be issued directly to individuals bank account without the need of any tax refund intermediary or agent.
Individuals earning Reportable Income but have a history of having other income or deductions
Under this category only those Individuals will fall who earn reportable income and inland revenue may have a doubt that the individual has other income (e.g. rental income, partnership, self-employment income or employment share scheme) as well based on the previous returns. The additional information can be either submitted manually or electronically and this information is then added to the pre-populated account which makes it adjusted account. If the commissioner is satisfied with the information that he/she can issue a default assessment.
No or little Reportable Income
Individuals under this category will be required to provide income information and this process will more likely be similar to filing current IR3 return
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