Chapter 8 - Other concerns

Data and integrity issues
Compliance costs & document scope
Non-digital services

Data and integrity issues

There was a submission that the modernisation of the PAYE system needs to be able to address situations where no PAYE information is held about a taxpayer, for example, where the employer has not made the required deductions, or where the deductions have been made, but not passed on to Inland Revenue. An example was given of a new migrant who realised his employer was not deducting PAYE but didn’t know what to do as he did not want to lose his job or employer provided accommodation. A further example given was of a client who was dismissed without notice by his employer. His employer would not sign a declaration for Work and Income confirming his previous employment as he had been paid under the table.

Compliance costs & document scope

There was concerned with the short term compliance costs that will be imposed on businesses by these proposals. The submitter also submitted that the discussion document is not clear on what information will be sourced from accounting and payroll software, and cautioned that these proposals should not allow Inland Revenue unfettered access to data.

Non-digital services

Another common message was that some form of non-digital services must remain for those unable to use digital services.