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Should I Include KiwiSaver Tax Statement Information In My IR3 Return?

Contributor:
Mary Holm
Mary Holm

Question:

I received my Tax Summary and IR3 tax form from the IRD and wondered about why they sent it to me, as I've never received one before. I then did a rough calculation according to the guide and I was due a refund (because I was made redundant and unemployed for a few months). Anyone who does not work a full year should complete one, as PAYE is calculated on working a full year.

I completed the entire form by myself, included earnings from dividends, interest and the more complex tax imputation credits. I also claimed for my income protection insurance which, according to my provider, I could claim for as well.

Note: At this point I would like to say the IRD made completing this form easy, with their numbered boxes and guide book.

I duly sent it off to the IRD. I then received a KiwiSaver Tax Statement, that I did not include. Did I need to include that as well?

Answer:

Mary Holm: No. To my knowledge all KiwiSaver investments - unless you hold shares directly through ABN AMRO Craigs - are PIEs, or portfolio investment entities. And PIEs take care of your tax for you, deducting it and sending it to Inland Revenue.

The only time the tax in a PIE might not be final is if you told the people running the PIE to withhold tax at the lower 19.5 per cent rate when it should be at 30 per cent. But assuming you did that correctly, you don't have to do anything more.

On your other point, yes, everyone who hasn't worked the full tax year, March 2008 to March 2009, should ask Inland Revenue for a summary of earnings to see if they are in for a refund - which is quite likely.

What's more, you can do it for any of the past five years. So if you've had any gap in employment in that time, it's well worth giving this a go.

Some companies help you to check if you have a refund coming, but they charge you or take payment out of your refund. You can do it yourself for free by going to www.ird.govt.nz and doing a search on "summary of earnings". Click the first item, requesting a summary, which will be mailed to you. Then follow the steps from there.

Our correspondent's comments on how easy it is should be encouraging.

 

Mary Holm is the author of bestselling books on KiwiSaver and personal finance. She is also a highly praised seminar presenter. Her written advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following that advice.     

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