Buisiness Transformation - Taxation software update
Business Transformation – Transitioning from “FIRST” through “Fast” to “START”
Inland Revenue has been implementing “business transformation”, using software program intended to modernise New Zealand’s tax service, in theory making the administration of our tax system simpler and more efficient. An integral part of the program involves using American supplier Fast Enterprises (Fast), to develop a new software platform that progressively replaces the existing FIRST system. The introduction of a software solution that simplifies the tax administration and provides flexible, efficient service is welcome. "Fast will supply a fully integrated tax solution, rather than building a system from the ground up," reported Inland Revenue's Deputy Commissioner Change, Greg James on 8 June 2015.
However, as with many technological developments, it is inevitable that during the transitional period there will be some hiccups, bumps, and unexpected issues that arise. Hence the release of the Supplementary Order Paper (SOP) No. 190 on Tuesday, 16th August 2016, proposing an amendment to the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill. This amendment allows “transitional regulations and administrative exemptions to be made during Inland Revenue’s business transformation process.”
What does the amendment do?
In essence, the insertion of the new s 227B to the Tax Administration Act 1994, allows the Governor General to make regulations to resolve transitional issues that arise during the co-existence of the two software platforms while Inland Revenue moves from FIRST to START.
The proposed amendment in summary:
We look forward to the full implementation of Inland Revenue’s new software platform and hope that it leads to the desired effect of more efficient tax administration. With the inevitable bumps, let’s see if bestowing the Governor General with the power to implement regulations during the transitional period has the desired effect of smoothing the way to a new efficient Fast START system.
Posted: Monday 22 August 2016