Consumer NZ raises tax concern

TOM PULLAR-STRECKER
Last updated 18:00 12/06/2014

Relevant offers

Money

Liberty Financial looks to expand lending with KiwiSaver money NZ and Australia's housing markets behave as one - UBS 'Rentvestors' striving to keep their property dreams alive The moose's head, and the slow death of laybys More Panama Papers revelations due Monday Lotto ticket bought in Cromwell wins $1 million 'Victory for the little guy' after resident receives power cut payout Agent woos house sellers with Chinese demand Builder's clients fall prey to scammers Budget Buster: Smoking is officially dead, so bring on the vaping revolution

The proliferation of companies offering to help people get tax refunds is a sign Inland Revenue may not be working as well as it should, Consumer NZ says.

Chief executive Sue Chetwin said the consumer body had surveyed about 700 of its members and found 70 per cent believed the tax system was responsive and fair.

But she said the demand for tax-refund services might be because the tax-take was "now tipped in the IRD's favour".

Earlier today, Revenue Minister Todd McClay indicated reforms of provisional tax were likely, which would ensure business owners would not need to forecast their tax bills far in advance.

KPMG tax partner Paul Dunne said high interest charges and penalties imposed by Inland Revenue for underpayment meant that many businesses chose to be "conservative" and overpay.

Chetwin said it was positive that many people did not now have to file tax returns, but was concerned they were paying more tax than if they had, and then needed the help of intermediaries to claim back their overpayments.

"Why not tax better in the first place?" she asked.

Some consumers might not understand the fees charged by tax refund businesses, she believed, and the information available to consumers "is not as good as it should be".

Chetwin indicated she expected the Commerce Commission to act on those concerns.

Ad Feedback

- Stuff

Comments

Special offers

Featured Promotions

Sponsored Content