Thursday, April 25, 2024

FROM THE RIDGE: A taxing job causes incompetence

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More than 20 years ago I wrote a column quietly taking the proverbial out of Inland Revenue. It seemed like a good idea at the time.
For a long time, politicians and corporates have got away with cheap money and no real accountability, says Cameron Bagrie.
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My main theme was it had just decreed we would now have to put postage stamps on the letters we sent them with the cheques, well before internet banking, for the tax we deducted from employees.

I argued that as unpaid taxpayers it was a bit rich putting this small impost on battling, small-business folk.

Later I took the issue up with the revenue minister and whether it was my efforts or just an intended change, for many years the letters we sent back had postage paid on them.

Nowadays, of course, you must put a stamp on again.

Most of us don’t want to run the risk of the letter not getting there in time and costing a penalty or, worse, antagonising the department so we diligently smack a Kiwi stamp onto it and put it down as our contribution to keeping this great nation on an even keel.

In those days my shearing contractor was open shed rather than contract as now, which meant I paid every single shearer, rousie and presser each time they came.

During the course of the year that could amount to 50 or so individuals.

One was required to do an annual summary and mine was always a few dollars out. That was before I used spreadsheets so was manual and with a calculator. I’d spend hours trying to find the mistake.

I was always tempted to invent an employee and award them the discrepancy to make it balance. Which, I hasten to add, I never did.

However, my mistake at the time was to write in my column that was what I did do because it seemed an amusing concept.

Who would have thought the department read a broken-arse sheep and beef farmer’s random thoughts?

Well, it turned out that it did. Unfortunately.

Some weeks later, my accountant Knobby was surprised to get a request the department wanted to do a GST audit on me.

It was at this stage I considered the column might not have been the best of ideas.

Knobby thought it was likely a coincidence.

I had nothing to hide and nothing was discovered.

The department then requested a full audit on a couple of financial years and again nothing was discovered because, again, I had nothing to hide.

But it probably cost me a couple of thousand dollars in accountancy fees in the dealings we had with the department and that was a lot of money then when we didn’t have much.

I don’t think I’ve ever mentioned the department since. I might have been stupid but I’m a fast learner.

However, I’m brave enough to mention this small anecdote because it has a much kinder regime now and my recent dealings with its help desk have been a good experience and I’m sure if its staff are reading this they would like to hear me say so.

In December they send out the January Pay As You Earn form early because of the holiday shutdown.

I had the misfortune to get the December and January forms mixed up. I had never realised they are month specific. But they are.

So, my November deductions which were paid by internet banking in December were recorded on the December form and in January I paid the December PAYE deductions on time by internet banking and recorded on the November form.

I won’t go into how much trouble this caused both myself and the help desk but I can say we finally resolved the issue after many calls and all agreed the penalties be waived.

They were very helpful and understanding of my stupidity.

So, thanks Inland Revenue for the desire to help taxpayers do the right thing and for the helpful and patient folk you have on the helplines.

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