The investment in the new IRD Website appears to be paying big dividends with 450,000 taxpayers identified as having the incorrect PIR (Portfolio Investment Rate) on their PIE Investments such as Kiwisaver and other investment accounts in the 2017 income tax year.
Technically if PIE investments have the incorrect PIR rate the income tax on the investment has been under-taxed and the income should be reflected in the taxpayer’ income tax return.
Fortunately, the IRD have decided not to follow-up previous year’s errors saving taxpayers millions of dollars.
There is a huge lesson to be learned from this. Taxpayers should be checking all PIE Investment accounts annually to ensure the PIR rate is correct in line with the taxpayer’s taxable income from their tax returns. If you are unsure please contact Walsh & Associates and we will be able to help you.
If you are keen to read more have a look at this link: https://www.stuff.co.nz/business/113227446/450000-people-have-been-paying-wrong-rate-of-tax-on-kiwisaver-and-other-investments-ird-discovers