| In New Zealand prior to 2001 anyone who was paying | | | | debt. |
| tax had to declare this at the end of the year to Inland | | | | In recent years Inland revenue has tried to update it |
| Revenue on a form called an IR5. This was hard on | | | | public image and to escape the image of the tax man |
| those who were not very good at keeping records | | | | people imagine as a tyrannous organisation sought on |
| etc. In 2001 New Zealand introduced the PAYE | | | | stripping the public of every last cent. Despite |
| system or Pay As You Earn. The way this system | | | | there best efforts there are still plenty of people |
| worked was that tax was deducted from your | | | | today who would rather not deal with Inland Revenue |
| employer and and paid directly to Inland Revenue | | | | direct. This has spurred a market for tax agencies |
| before you even received this. With the new PAYE | | | | who check this for people and where there is a refund |
| system there was no need for the IR5, thus for the | | | | claim it on their behalf deducting a fee. These sites |
| regular salary and wage earners there was the | | | | have been known to take fees of up to 25%. Despite |
| personal tax summary. As Inland revenue now had a | | | | this New Zealand has taken to this craze and |
| record sent to them monthly regarding your income | | | | hundreds of thousands of New Zealanders each year |
| and tax amount, Inland revenue could see if you had | | | | use these companies. Looking into these companies, |
| paid the correct amount of tax for year. The personal | | | | even though there fees may be excessive, they still |
| tax summary is a form that sums up all your income, | | | | occupy an important part of the market, a gateway |
| sees how much tax you have paid and compares that | | | | for those people who do not want to deal directly with |
| to how much you should of paid. If you have overpaid | | | | Inland Revenue or may not even be aware that they |
| you are entitled to a refund and if you have underpaid | | | | can claim a refund. However, it is not completely |
| you have to pay back a debt. Now the system was | | | | necessary for these companies to deduct a fee. It |
| geared slightly to overtaxing people rather than under | | | | seems a logical step for this industry, as a service |
| taxing as for most people it easy to receive a lump | | | | which offers such an easy yet essential service |
| sum tax refund as opposed to being hit with a tax | | | | should do what it can to minimise costs to the public. |