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Increased non-declaration rate

If PIE income has a higher non-declaration rate, do you think the PIE income taxed at this rate should be treated as taxable income so recipients can claim the tax credits?

If PIE income has a higher non-declaration rate, do you think the PIE income taxed at this rate should be treated as taxable income so recipients can claim the tax credits?

Comments

Rob
Yes. PIE providers are likely to be the recipients of bad-will from investors if such high taxes are withheld and unable to be refunded.

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1 month ago
Doug
PIEs were supposed to simplify tax for small investors. I believe that they have resulted in numerous errors as to the correct tax rate being applied. The Non Declaration rate is a heavy hand for most compliant NZ taxpayers a significant number who are not required to file tax returns TAA ss33A, 33C which encompasses most employees and retirees. Please do not make investment decisions for mum & dad & the kids investors more difficult

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3 weeks ago
Tony
The present PIE tax regime is very one-sided, and favours the IRD against the taxpayer if the wrong PIE rate is selected. The PIE rate is based on the previous two years earnings, and may well be at the highest applicable rate while the taxpayer is in full employment. However, during the year the taxpayer's circumstances may change - for example, retirement, redundancy or sickness. The high PIE rate is no longer appropriate, but there is no mechanism for obtaining a refund of the overpaid tax. However, If the PIE rate was inadvertently too low, the IRD are able to recover the additional tax at year end. This treatment is inequitable, and should be corrected as part of the current review.

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2 weeks ago
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