Well how about the timing? I am currently launching a free online payroll service for businesses. In theory I object to the idea of mandatory electronic filing but am presently at no risk of speaking out against it.

The IRD have just had a conference with software developers and it is quite likely (I had to pull out so can't say for sure) there were organisations there lobbying for mandatory electronic filing. Chances are they will go ahead with it. The good news is that you will have no problems achieving this without ongoing costs even if you don't want to use a 3rd party service - you can always use the IRD's online tools which I'm sure they will eventually redesign and make more intuitive (website = great - online tools = terrible)
 

the question is about electronic filing for ALL tax payers. As a budget advisor I meet people who are such poor taxpayers they can't afford a landline let alone internet access and a computer. this would put another burden on the poor who already have to go and use a pay phone to call IRD because there are no local offices anymore.

All this is fine provided lieracy and numeracy amongst adults in NZ is adressed first, prior to compulsary computer skills usage provided free anywhere in NZ to ensure Boomers and X generation to ensure that they are computer lterate. Broadbrand free for all would be good too! Me thinks that this cost is greater than the savings from efiling.

Kia Ora, On the surface this seems like a good idea but my recent experiences both through business & as  an individual I am seriously concerned about the poor systems IRD has in place & the fact that when wrong they refuse to admit it.

serious issues have arisen in regards to my ability to use IRD online services in regards to PAYE & information keeps dissapearing.

There would have to be a massive change in IRD's attitude & competency in use of electronic mediums before I would be comfortable in giving too much inofrmation to them on line.

IRD also have to learn to give answers in plan english as when even accountants are struggling to understand what has being given as a reply it is very frustrating & time wasting. Especially for small businesses & it can be very stressful.

Why is it that overpaid tax from prior years just sits there with no communication from the IRD that it is there? Until I filed my 2010 personal return on line this year, and just decided to look at previous years that I found it. Under an electronic world, I think they could disptach an email at least saying ' hey buddy do you know you have a credit sitting in old year'? Obviously they could do this by letter too right now - they have my address - no sure why they dont take this proactive action??

In principle I agree that all businesses should have to use electronic filing. However I don't think business should be forced to purchase software to get the ability to file electronically. My company only has 2 employees, both of which are on salary so the monthly pay is really simple and I don't need to have software to work out any of it or track holidays etc. I just keep it a spreadsheet however I do file the paye and gst return electronically using the IR's online forms.

I don't want to have to use payroll software. I am quite capable of working out the deductions correctly and unless the software gave me the benefit of being able to do the employee's banking transactions for me (as quickly and cheaply as I can already do them via internet banking) or being able to set up the banking transaction to pay IR then I see absolutely no benefit in using a software package.

As I do all the company's banking electronically, I would love my internet banking system to track some of this information. For example, let me setup my employee's details e.g. their salary & deductions, and their bank account number. Then each month when I pay them, I call up the employee, check (and if necessary edit their pay details), press GO and have the bank's software create the payment to the employee, file the necessary information with IR and set up a future dated payment to IR for the paye – all done! I'd even be prepared to pay the bank a reasonable fee for this service.

Alternatively, if the banks were prepared to play ball with IR, then IR could set up online a really simple pay sheet system. Login to IR, call up your employees, make any changes required, press GO, it calculates the deductions & net pay, connects to your bank and sets up the employee payments & the future dated paye payment (all in a pending state). I could then login to the bank and activate the payments. If there are privacy concerns then perhaps you don't give the IR the actual bank account details, instead all you tell them is which bank your company uses and a unique identifier from the bank. The bank then knows from this identifer who you are and has a record of your employee bank account details for crediting.
 

No, Signing forms must be a priority. Can not do this electronically.

This whole consultation process is a crock.  To even know about it you have to be on line. There are a lot of people who do not even have a computer. 

I can and have filed income tax and GST returns online  but do not do so any more - I find that it is much quicker for me to use and pen and a printed form and I resent the extar time it takes me to file returns online so that the IRD can save time at their end.

Give me the option between online filing and paper based filing I say.