Inland Revenue says it has reached the half-way mark paying out tax refunds for the latest year, with $319 million refunded to taxpayers so far. It has 'thanked' people still waiting for a refund for being patient, as its contact centres struggle with a record level of calls.
Deputy commissioner Sharon Thompson said some people had told the department they expected their refunds their sooner, but rejected those criticisms.
"We understand people's concerns and next year we'll be aiming to get refunds out sooner.
READ MORE:
* 550,000 people underpaid tax on investments while 950,000 paid too much, says IRD
* Revenue Minister Stuart Nash asks IRD to investigate allowing investment tax refunds
* 'Wrinkles' with new IRD system adding up to a bigger headache, says top accounting body
"But for this year the end of July was always our target. It's our first year with the new system and we've deliberately taken more time, to be sure we get it working the way it should," she said.
Everyone assessed as being eligible for tax refunds should have them paid into their accounts by the end of July, she said.
"There are roughly 1.2 million assessments still to be issued, and they'll be sent out in batches over the next five weeks."
So far, the tax position of 1.3 million people had been assessed, she said, with 735,046 refunds, 147,300 bills to pay and 442,154 taxpayers squared up.
Thompson said demand on Inland Revenue's services was at "record levels".
"We knew there would be increased pressure and we planned for it but the volume of calls through our contact centres is such that we continue to experience significant overloading," she said.
"Many people want to know the whereabouts of their assessment, but the simple message is that it's coming."
Earlier this week, Inland Revenue revealed it believed about 950,000 people had overpaid a total of $42 million in tax last year by self-selecting a tax rate on KiwiSaver and other PIE investments that was too high.
The repayments cannot be refunded under the law as it stands.
Another 550,000 people are estimated to have underpaid between $45m and $50m in tax by instead saying they should be on a tax rate that was too low.
They are being billed for the underpayments last year, but will not be chased for any tax they have avoided on those investments in previous years, as a result of an Inland Revenue decision to draw a "line in the sand".
Revenue Minister Stuart Nash has asked Inland Revenue to look into the implications of changing the law to allow overpaid tax on KiwiSaver and other PIE investments to be refunded in future, but has said any change would not be retrospective.
National Party revenue spokesman Andrew Bayly has said such refunds should be allowed both in future and for the 2018-19 tax year.
0 Comments