Tax refund season 2019

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Forums › Finance and wealth management › Tax refund season 2019

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Smpl Mnmlst
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#2255897 11-Jun-2019 11:50

Fred99:
Blessed day. Unknown to me, SWMBO's kiwisaver PIR was set at 10% instead of 28%. IRD phones you up first - rather than sending a letter/email out of the blue - or at least they did in this case, maybe 'cause it was a reasonably large amount. Very pleasant staff apparently trained in counselling, to ease you into the shock that you'll have to pay them $$$$. There's time to prepare, still gonna have a three course meal tonight, saveloy stock soup, the saveloys for main, sour grape humble crumble for dessert. (I'm not fond of people who evade taxes - yet here we are - though not deliberately).

If I understand IRD’s communications correctly, prior to their recent change in procedures, that would not have been picked up. Bugger!

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eracode

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#2256693 12-Jun-2019 13:03

MurrayM:

eracode:

@MurrayM I also thought of doing what you have done. I’m confused too. It appears they are holding my interest and dividend income info - but details are not showing in the later pages where dollar amounts should be showing.

I have just sent them an email via MyIR saying: “You have sent me an email saying info is required from me. Your MyIR website has boxes ticked to indicate that you already hold details of my interest and dividend income - but on later pages the boxes for my interest and dividend amounts show $0. I don’t understand what I need to do.”

Yup that sounds exactly like what I saw.

Please let us know if you get a reply back.

@MurrayM

Well, I've received a reply from them but it's not exactly helpful:

"Subject: RE: Info Held by IRD

Good Morning

The current auto calculated return we have for the year ended 31 March 2019 has your salary and wage income of $xxx with PAYE deducted of $xxx plus interest from [a] bank of $xxx with RWT deducted of $xxx.

If you have not earned any other income please confirm this and we will process your return.

Please advise if you are receiving any future income from dividends or claiming any non business expenses as we have this type of income etc on your profile. If you are not we will remove from your profile and you will not be asked for more information in future years.

Regards

Aaa
Customer Compliance Specialist"

This doesn't help me because they have ticked boxes indicating that they hold interest and dividend info for me, and they know that I have had other interest (i.e. from a different bank to the one they referenced) and dividend income in many previous years - but they have not included that information in my auto-calc return numbers. Their last sentence regarding dividends is particularly confusing because they say they have this type of income in my profile - but they haven't included any numbers. Annoying, puzzling and frustrating.

I'm going to wait for my wife's auto-return notification to turn up and see what that says. Her numbers are identical to mine so it will be interesting to see how they handle hers.

I may end up ringing them - God forbid.

Sometimes I just sit and think. Other times I just sit.

BTR

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#2256701 12-Jun-2019 13:23

I owe about $360ish

MurrayM

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#2256708 12-Jun-2019 13:41

eracode:

Well, I've received a reply from them but it's not exactly helpful

Hmm, I see what you mean, not exactly clear is it?

My return has moved from "Awaiting Processing" to "Processed". If I view the submission I can see in the "New Zealand interest" section it has $0.00 figures, so if they had my interest and RWT figures like they said then they don't seem to have filled them in. In tha past I've received an email from them saying that they'd accepted or amended my return, but so far I've received nothing.

Gordy7

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#2257925 14-Jun-2019 09:29

I wanted my refund paid into my bank account.
It appears that I did not understand IRDs terms:
- Transfer credit.
- Refund credit.

I emailed IRD to enquire about the delay and received this:

In future if you want your credit refunded do not select the 'Transfer' option. A return with an error usually takes up to 10 weeks to be processed however I understand from your message you are wanting the credit refunded so I have removed the transfer request.

You will receive your refund within 3 working days.

Gordy

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eracode

Smpl Mnmlst
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#2257930 14-Jun-2019 09:38

Gordy7: I wanted my refund paid into my bank account.
It appears that I did not understand IRDs terms:
- Transfer credit.
- Refund credit.

I emailed IRD to enquire about the delay and received this:

In future if you want your credit refunded do not select the 'Transfer' option. A return with an error usually takes up to 10 weeks to be processed however I understand from your message you are wanting the credit refunded so I have removed the transfer request.

You will receive your refund within 3 working days.

Wouldn't you think they would make it clearer:

"Transfer credit - to your IRD account"

"Refund credit - to your bank account".

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msukiwi

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#2260880 19-Jun-2019 13:52

SO got a letter stating that she is getting a refund of...wait for it..... $1.38!

Then in the other envelope received the same day.....Your refund has been processed and deposited into your chosen Bank Account!

Sheesh.... why do they bother for anything under an arbitrary amount like $20?

eracode

Smpl Mnmlst
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#2260888 19-Jun-2019 13:56

msukiwi:

SO got a letter stating that she is getting a refund of...wait for it..... $1.38!

Then in the other envelope received the same day.....Your refund has been processed and deposited into your chosen Bank Account!

Sheesh.... why do they bother for anything under an arbitrary amount like $20?

.... or wait to send both letters in one envelope - or cover both advices in one letter. The postage on two letters was probably more than $1.38.

If they withheld even small refund amounts, people would scream blue bloody murder.

Sometimes I just sit and think. Other times I just sit.

jonathan18

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#2260928 19-Jun-2019 14:57

I completed mine this week; I read somewhere I only needed to add additional sources of income if they were over $200 - RWT from my main bank wasn't listed. Given it was below $200, could I have simply ignored it and completed the return?

As it was, it was a good incentive to get my donation tax credit sorted, It's great to be able to do this online again, as I recall last year having no option but to do it in hard copy.

It's also a positive to see many aspects of our tax system becoming simpler to manage, and that's with a system that's already pretty streamlined and efficient compared to many countries.

Planet Money did a fascinating podcast a couple of years ago on an attempt to simplify tax returns in the US (where they are apparently a nightmare) - a pilot study in California showed great results, but it hit opposition from a neo-liberal group who wanted to maintain the complexity on principle. Very much worth a listen:

https://www.npr.org/sections/money/2017/03/22/521132960/episode-760-tax-hero

MurrayM

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#2260943 19-Jun-2019 15:19

Yeah many companies in the USA make a lot of money doing peoples tax returns, so they've got a vested interest in keeping it as complicated as possible.

jonathan18

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#2260950 19-Jun-2019 15:33

MurrayM:

Yeah many companies in the USA make a lot of money doing peoples tax returns, so they've got a vested interest in keeping it as complicated as possible.

Yeah. according to this article one of the major players blocking the simplified approach in the US was Intuit, who put a decent amount of money into lobbying against it; also "Records show that tax preparers have spent over $28 million lobbying Washington since 1998."

Another key source of opposition was a small government devotee, who some claim was driven by the same sentiment behind Regan's statement that 'paying taxes should hurt'.

Thank god we're not (as) beholden to the influence of lobbyists as the greatest "democracy" on earth!

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nzkiwiman

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#2264048 25-Jun-2019 13:42

Got some emails while overseas; this thread reminded me to actually go read them

Owe $125, seemingly due to my PIR with Kiwisaver being wrong (whatever that is)

JaseNZ

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#2270274 5-Jul-2019 09:30

OMG so excited I may even be able to retire now.

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Quinny

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#2270449 5-Jul-2019 12:42

No investments outside KiwiSaver (at correct pie), standard paye payer (wages at work via well known payroll software) and hit with $500 bill. Yay me. No idea why so guess need to expect one all the time.

redherring

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#2270452 5-Jul-2019 12:47

Got a bill for $375 because:
1. IRD included an extra pay period (from this year) in their assessment.
2. That pushed my total income into a new tax bracket so I haven’t paid enough tax.
3. They’ve now overpaid my Working for Families because with a higher income I’m not entitled to as much.

Great work by the new system.

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