5 February 2020 Webinar Slides with speaker notes Kia ora, Koutou, - PDF document

5 February 2020 Webinar Slides with speaker notes Kia ora, Koutou, Ko Kahungunu toku iwi No Heretaunga ahau Ko Korongota, Omahu toku nga marae Ko Rata Kamau toku ingoa Good afternoon everyone, and welcome to the latest webinar from Inland Revenue. My name is Rhys and joining me today is Aroha Paranihi. We are Community Compliance Officers at Inland Revenue. Rhys and Aroha to personalise Today’s webinar is all about Inland Revenue’s next round of improvements as part of our transformation programme. These improvements will be implemented from April 2020 and designed to make tax easier and more certain and provide better services for you. Just a note to point out that the changes we will go through are subject to change and may change prior to April 2020. Any changes will be reflected in following webinars we do. Before we start, let’s go over a few housekeeping notes. I’d like to run through what you should be seeing on your screen, and how to interact with us. In addition to the presentation slides on your screen you’ll see a small control panel at the bottom of your screen that contains a few buttons. When you click on each of these buttons, you’ll see they either open or close some of the features which may already be open on your screen. On the left of your screen you’ll see the • slides box on which we’ll display the presentation slides during the session. You should also see a Q&A box on your • screen. By clicking in this box – in the “enter your question” section, you can send through questions during the IN CONFIDENCE

session. You are welcome to send us questions at any time during the presentation. Other participants won’t be able to see your question, but they will come through to us. At the end of the presentation, we’ll • have some time to work through as many of your questions as we can. We may not get through all the questions however just as we have in the past, we will collate all questions, get them answered and send them out to all participants via email. The speaker bio section which may • also be open on your screen, provides more information about your presenters or in this case, it will tell you a bit more about me. If for any reason you get disconnected or if you are unable to stay for the whole session, the webinar will be available on demand via our website. You will also receive a link to the on- demand session once it’s available, following the webinar. Let’s first look at which organisations are eligible to become Māori authorities. Te Ture Whenua Māori Act 1993 Companies (see the act legislation) • The trustees of a trust (see the act • legislation) A company that owns land (see the act • legislation) The trustees of a trust who own land • (see the act legislation) The Māori Trustee in the Māori Trustee • capacity as an agent for an owner of land (see the act legislation) The Māori Trust Boards Act 1955 A Māori Trust Board (see the act • legislation) Crown Forest Assets Act 1989 The Crown Forestry Rental Trust (see • the act legislation) Māori Fisheries Act 2004 Te Ohu Kai Moana Trustee Limited, • established in accordance with section 33 of the Māori Fisheries Act 2004. Aotearoa Fisheries Limited, established • in accordance with section 60 of the Māori Fisheries Act 2004 A company that is established by a • mandated iwi organisation to be an asset- holding company (see the act legislation) or recognised by the Te Ohu Kai Moana Trustee Limited as a IN CONFIDENCE

mandated iwi organisation (see the act legislation) The trustees of a trust that is recognised • by the Te Ohu Kai Moana Trustee Limited as a mandated iwi organisation (see the act legislation) The trustees of the trusts that are • established by the Te Ohu Kai Moana Trustee Limited in accordance with sections 79 and 92 (see the act legislation). Treaty of Waitangi A company that on behalf of Māori • claimants, receives and manages assets that are transferred by the Crown as part of the settlement of a claim or is contemplated by the deed of settlement of the claim as performing the functions referred to in subparagraph The trustees of a trust who on behalf of • Māori claimants, receive and manage assets that are transferred by the Crown as part of the settlement of a claim or are contemplated by the deed of settlement of the claim (see the act legislation) Māori authorities making taxable distributions to members must provide information to us more regularly under the Taxation Act. The information payers need to provide is defined in section 25D. Some year-end certificates will no longer be required. Here you can see what information will be needed during the year, when it should be provided and what the implications are. Some of these are new requirements and this information must be provided from 1 April 2020. The reporting requirements are the same, rega rdless of the legal structure of the Māori authority, e.g. even if the authority acts as a trust. For those of you who may not be aware, most Inland Revenue offices have a Kaitakawaenga Māori who can assist Māori organisations and individuals with their business tax responsibilities. Our advisors will tell you: which taxes you need to know about • what records you need to keep • how to complete your tax returns (for • example, GST and employer returns), and when to file returns and make • payments. IN CONFIDENCE

If you do need assistance I would encourage you to use their services. Information on how you can make contact with them is at the end of this presentation. Before we move on to the upcoming tax changes, I’d like to do a recap of our transformation and why are we making these changes. Our transformation aims to simplify the way we work with customers and deliver services. It includes improvements to policy and legislation, as well as upgrading an ageing computer system. By modernising and simplifying tax administration for everyone, whether you have a business or are a salary & wage earner, we aim to: build a revenue system that is • fair and supports high levels of compliance; ensures payment requirements • are easy to get right and hard to get wrong; Ensures compliance obligations • are quick and low effort for individuals; and ensures processes are more • certain and provide confidence that the right thing has been done. Ultimately, we want to reduce tax administration costs and lower the overall compliance costs. Your expectations on the services we provide and deliver to you have changed and we need to change to meet these new expectations. For those who haven’t seen this slide before our transformation planning started at the end of 2015 and after three releas es we’re starting to realise some of the benefits. W e’re taking a phased approach with major releases occurring every year from 2017 to 2021, each one aligning with the beginning of the tax year in April. This is now well underway, with the first three releases having been implemented. Because we don’t have much time today, I will leave you to read these changes in your own time. A reminder for those who haven’t already done so, this pack can be downloaded from our website where you registered for this webinar. IN CONFIDENCE

It’s worth noting that the most recent set of changes implemented in April last year were the biggest changes introduced yet, and had a significant impact on many of you, due to the introduction of new legislation, systems and a new website. Some of the larger changes were: Payday filing became mandatory and • the PAYE electronic filing threshold was reduced, We introduced new reporting • requirements for employment and investment income information, We introduced a new, automatic year- • end process Income tax and Working for Families • were migrated to new systems and processes, We also introduced a new Inland • Revenue website and revamped digital channels and services. Now we’ll look ahead to our next set of changes, most of which are effective April 2020. At a high level Electronic investment income ▪ information reporting, which is currently voluntary, becomes mandatory We will make KiwiSaver, PAYE and ▪ student loans easier to manage KiwiSaver, Student Loans and PAYE ▪ financial information will be moving into our new system, meaning you’ll have a more integrated, real-time view of what’s been paid when. PAYE processing will be held in a single ▪ employer account; We are moving the backend processing into our new system, meaning transactions and payments will show up a lot sooner. We’re making a few improvements to ▪ Working for Families, Student loans and KiwiSaver, mainly to help reduce large over and underpayments. There is a new research and ▪ development tax Incentive. And a new short process ruling, which ▪ we’ll cover briefly. Finally, we’ll look at how to pay seeing ▪ that cheques will no longer be accepted from 1 March 2020. We’ll have a look at these more closely, I’ll start with the changes that will affect you if you are filing investment income information to us. IN CONFIDENCE