Use of tax numbers to be compulsory

Press, 3 September 1982, Page 7

Use of tax numbers to be compulsory

Taxpayers will have to use their personal tax numbers on Inland Revenue Department Forms from October 1, under a change announced in the Budget. The department's computer system, identified each person by a number, in the same way that banks identified accounts, said the department’s commissioner, Mr John Simcock. All tax transactions relating to the taxpayer were recorded in the computer and numbers made it easier to make assessments and calculate refunds. he said. Although some people already used their I.R.D. numbers, most used only a tax code. The introduction of compulsory I.R.D. numbers would help the processing of tax returns and release resources for a greater effort by the department to stop evasion, Mr Simcock said; “Once operative it will be an effective and efficient way of policing the tax system and anything that increases efficiency the taxpayers should be interested in developing," he said. The department was trying to. publicise the change. Mr Simcock predicted that many people would not know their I.R.D. number and would ask the department

rather than doing all they I could themselves to find it i out. i There were several ways i people could find out their 1 number. It would be on a < copy of last year’s return, on an assessment to pay tax, > and also on a refund notice. < So far, the department had i sent out 3.5 million IRI2 1 forms to employers. Every working person has to fill in 1 a new tax declaration using i both the appropriate code and the I.R.D. number. < In the next few days 1 notices would be sent to i employers asking for their i co-operation. Mr Simcock < said. 1 The department wanted S

them to look after their employees in bulk by providing a list of all those who could not find their tax numbers for the department, he said. The P.A.Y.E. system worked through the good will of employers, and the department was grateful for their help. Mr Simcock said the use of I.R.D. numbers would be more efficient. People with special tax codes will be sent advice from the department, and national superannuants do not need to fill in a new tax code declaration as the department is liaising with the Social Welfare Department.