Faster GST refunds becoming compulsory
The Minister of Revenue has announced the Government has made changes to the tax administration rules; these changes will take effect on 7th February 2017. This is all part of the tax transformation/modernisation programme, making it easier and faster for New Zealanders to manage their tax.
For businesses who file GST returns, these changes will mean that customers will receive their GST refunds directly from IRD into the tax payer's identified bank account in just two days.
This will make the turn around time for funds to reach business bank accounts quicker and inevitably help IRD cut down on administration costs.
Cheques will only be sent to businesses in the case that IRD do not have the customer's bank details or there is extenuating circumstances, such as hardship.
This also means that you need to take extra care when filing your returns, errors take longer to unwind and if refunds are received in error it can lead to penalties and/or interest charges.