Farmers urged not to pay tax return postage

Press, 31 August 1989, Page 14

Farmers urged not to pay tax return postage

By

JOHN HARFORD

North Canterbury farmers are being encouraged not to pay postage on their tax returns.

The provincial executive of Federated Farmers was told yesterday that farmers were upset the Inland Revenue Department no longer had a freepost service for returns. It unanimously passed a remit urging farmers not to pay the department’s postage costs. Discussions will be held with other businesses about seeking payment from the I.R.D. for the work involved in compiling returns.

Changes outlined in the Budget mean employers have to file returns and P.A.Y.E. payments two weekly. Farmers also

have to furnish GST returns.

A legal opinion was sought before the remit was put to the meeting. The secretary-manager, Mr Gary Bourke, said it was not illegal to send mail without a stamp, although the recipient would have to pay the postage and a surcharge or refuse the letter. Mail bearing the sender’s name and address would be returned.

It was possible for mail to be sent to a Government Minister without a stamp, said Mr Bourke. People who sent mail to the Minister of Revenue instead of the I.R.D.

would probably be responsible for any penalty incurred for late payment, if there were a delay in forwarding. Some delegates said employers with wages bills of less than $lOO,OOO should be able to continue to supply returns each month. Mr Peter Roberts said he would have to supply 34 returns each year. It took hours to work out GST and P.A.Y.E. reconciliations, all of which were done at no charge to the I.R.D. He objected to now also having to pay postage for each of the returns. The senior vice-

president, Mr Kelvin Coe, said the recent change in the GST rate would cost businesses throughout New Zealand millions of dollars.

“We are bearing the brunt of these costs and should raise objections," he said. Mr Bernard Duncan said the change to twoweekly returns for P.A.Y.E. had been selected to suit the I.R.D. There had been no recognition of the burden placed upon the public. The president, Mr Oliver Grigg, said there was a growing discontent among businesses at the cost of administering

P.A.Y.E. GST, and fringe benefit taxes.

The executive gave unanimous support to combining with small businesses, manufacturers, and the selfemployed in seeking payment for the work done on behalf of the I.R.D.

Mr Roberts said he would fight for money to do the work “or they can send someone out to do it for me.”

The possibility of a combined campaign against the department would be taken to a meeting between Federated Farmers and Christchurch businessmen.