Independent tax may be a challenge
A LONG-awaited move to independent taxation, confirmed this week, is very much in tune with the times and will be welcomed by many.
Though it should be said, not by all. There will be plenty of people who won’t be enthused about the disruption that they will face if they believe that their tax arrangements are currently fair and equitable.
But the biggest challenge for the under-pressure Revenue Service won’t necessarily be selling the concept to 12,000 new customers. It will be ensuring that the move doesn’t further disrupt its service delivery, and lead to even greater delays in processing assessments.
The service might be able to claim that it is reducing that backlog, but still 5% of annual returns from 2018, 16% from 2019 and 63% from 2020 remain outstanding and there will be no quick fix for the rest. Now resources will be channelled towards servicing queries, and, inevitably, handling complaints.
It has already moved to ease concerns about transferring personal and other allowances between couples, but is also warning that people should be careful to avoid what might be expensive mistakes in transferring allowances.
This move should, eventually, help the Revenue Service to become even more effectively digital and ease in a new tax IT system and enhance automation. If that can be made to work, it would be very welcome.