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​IRD works with Xero and MYOB on billion-dollar NZ tax program

​IRD works with Xero and MYOB on billion-dollar NZ tax program

“I have encouraged Inland Revenue to work closely with industry, including accounting and payroll providers."

Revenue Minister Todd McClay says New Zealand and international companies are reaping the benefits of the billion dollar programme to modernise and simplify New Zealand’s tax administration.

“We said the transformation of New Zealand’s tax administration would use a mixture of New Zealand and international expertise - and where a New Zealand company could do the work, I would expect they would be given the opportunity to,” he says.

“We have been true to that.”

To date, McClay claims that 67 percent of the spend on Business Transformation has gone to New Zealand companies, supporting businesses and creating jobs.

“This equates to $54 million into the New Zealand economy - with another $26 million going to international companies,” McClay adds.

“We also said that, where the private sector can provide capacity we would use them rather than Inland Revenue. We would borrow their expertise rather than build systems from scratch ourselves.

“I have encouraged Inland Revenue to work closely with industry, including accounting and payroll providers.”

As a result, McClay revealed that next month a sample of Xero and MYOB customers will be able to file GST returns straight from their accounting software to Inland Revenue, rather than having to file a separate return.

From March next year this will be rolled out to all Xero and MYOB customers, and in time it will be extended to all other software providers to offer to their customers.

“This may sound simple, but it has very practical benefits for businesses, cutting the amount of time it takes to meet tax obligations,” McClay adds.

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