According to the IRD, around 750,000 tax refunds will be automatically generated next year for wage and salary earners who don’t usually apply to get their tax back. Whilst subject to legislation being passed, this is being touted as the biggest change to individual tax in 20 years.
IRD Commissioner Naomi Ferguson said it hasn’t been mandatory for wage and salary earners to fill out an IRD personal tax summary, but if they had and were eligible for a refund, they would have previously had to file a return for the refund to be processed.
“In the new system all wage and salary earners’ tax will be calculated and refunds sent automatically,” says Ferguson. “Getting a refund, if you’re entitled to one, will be a whole lot simpler because it will be done for you,” she added. “The only reason for contacting Inland Revenue now will be to tell us about any additional income information that we need to know.”
If this applies to you, you’re not completely off the hook just yet. “It will be very important that everyone has made sure the details we hold about them – bank account number, contact details and so on – are fully up to date so the new system works well for them,” Ms Ferguson said. Check your details – it could be very worthwhile.
If you’d like more guidance in this area, or for any other tax-related assistance, get in touch.