23 Jan 2013

Banks may pick up some tax collection work

7:26 am on 23 January 2013

Banks may be given a bigger role in helping Inland Revenue collect tax, in an effort to lower costs.

Inland Revenue is considering how to run the tax system more effectively.

It is already planning to spend $1 billion over the next decade overhauling its ageing computer systems and ensuring it can cope with its workload and run more efficiently

A tax partner at KPMG, John Cantin, the banking system may be used to pick up some of the work, such as collecting GST payments or income taxes as payments are deposited into personal accounts.

Revenue Minister Peter Dunne says all options are being considered, including the use of third parties, but no decisions have been made.

Mr Dunne expects a business case to go to Cabinet in a couple of months.