A spokesperson for the IR said it had plans to simplify tax return paperwork for customers, but denied it planned to hike income tax rates in April this year.
“We are not introducing a 50 per cent rate of tax and there is no question of anyone paying more income tax as a result,” said the IR spokesperson.
The spokesperson was unwilling to apportion blame, but suggested that the journalist in question at The Times had misunderstood the substance of the Inland Revenue reforms.
Following an efficiency review, the IR plans to introduce a four-page tax return and tighten the criteria to reduce the number of people currently obliged to fill out tax returns, which it said will remove thousands of people from the system. Telephone helplines will also be available to resolve minor queries on returns.
The four-page return has been piloted with 50,000 taxpayers in four area offices and the IR plans to roll out the new paperwork nationwide by April 2005.
