IRD out of action as tax payments fall due
The Inland Revenue Department says businesses will be able to meet the deadline for tax payments on February 7 despite a five-day shutdown of its services.
There were no plans to extend the deadline but Inland Revenue would ‘‘be reasonable’’, spokesman Pete van Schaardenburg said.
MYIR, contact centres, and front of house services closed on Thursday at 3pm and would not open again until 8am on Tuesday, February 7.
The shutdown was due to a multimillion-dollar transformation of GST services that would make it easier for people to pay the tax.
‘‘[This is] obviously a very significant event, and is standard for a technology change of this magnitude,’’ van Schaardenburg said.
But the move has frustrated some customers who wanted to pay their tax before the due date.
After the change, customers would be able to file and pay their GST at the same time. Currently customers have to pay via internet banking after filing a GST return.
Deputy commissioner Greg James said: ‘‘The new capabilities will enable customers to register for GST, register as a preparer of tax returns, amend GST returns and accounts, file and pay GST at the same time, set up payment plans, and track their GST payments and refunds – all online.
‘‘Other benefits will include the ability for new migrants and organisations to be able to apply online for an IRD number, and businesses will be able to use their New Zealand Business Number when they or their advisers contact us.’’
More than half of New Zealand businesses file their GST through Inland Revenue’s secure online service, myir, or direct from their accounting software.
From February 7, a new MYGST tab on their myir account will provide access to all their GST information.
Simple Accounting director Bruce Earle said the timing of the updates was unfortunate.
‘‘What they’re doing by updating the services is going to be good in the end, it’s really the timing of it. If they could have waited it would’ve been better. This is the normal date for clients who don’t have an extension of time – those who don’t have a tax agent or those who do but don’t have overdue returns,’’ he said.
More issues could arise if customers rush onto online services when the system is up and running again.
‘‘I’ve seen it before when you try and log on and you can’t because their system is overloaded or busy,’’ he said.
Earle’s clients had been sent notices of what tax they owed, but if a client queried the figure there was no way to find out more information before the due date.
Those who don’t pay their taxes by Tuesday risk late payment fees.
‘‘It will be 1 per cent on the Wednesday if it’s a day overdue, another 4 per cent added on if it’s not paid within seven days,’’ Earle said. ‘‘Within the grand scheme of things 1 per cent isn’t a big deal, but it’s still extra money to pay.’’
The improved GST services were designed to make it easier for customers to get their tax right from the start, and would reduce compliance time.
A new tab would appear on Inland Revenue’s online service, which more than half of New Zealand businesses use, from February 7.