7000 pensioners overcharged in another Inland Revenue error
Almost 7000 pensioners have been affected by another Inland Revenue error.
Last week, RNZ reported that 4500 people had overpaid tax after their imputation credits had been incorrectly recorded in their prep-populated tax returns.
Others got in touch and said they had also experienced a problem, this time with the way that NZ Super was recorded for ACC purposes.
One man said he had been charged $301.68 in ACC earner levy for $18,854.98 of gross income from NZ Super that should not have attracted a levy at all.
He said he was not able to control this when he completed his return and did not realise the error until the process was complete.
He said he did not think a lot more about it but when he saw RNZ's reporting of the other error, he realised that there had been at least two this year.
"This really starts to suggest a deficiency in change control of IRD systems."
Another couple said they wanted assurance that Inland Revenue had taken steps to stop it happening again.
======================================
Inland Revenue said 6778 people were affected.
======================================
"There was an issue identified earlier this year where we were not populating the 'earnings not liable' figure correctly for some customers. We fixed those returns for the customers in July 2025."
Chartered Accountants Australia New Zealand tax leader John Cuthbertson said ACC was not paid on NZ Super because it was not liable income.
"However, if you're working and receiving NZ Super, your earnings from that work do attract levies."
"The advancements in digitalisation and MyIR have been quite incredible, except when it goes wrong like this. You shouldn't need a Chartered Accountant to check prepopulated forms, but the average person might not know that super income does not attract ACC levies. We used to say 'google it' but many taxpayers are now using AI to do a basic check of their tax returns, asking simple questions like 'Should I pay 'x' levy on 'y' income?"
Angus Ogilvie, managing director of Generate Accounting Group, said it was concerning that issues seemed to be leading to erroneous data being prepopulated into Inland Revenue's system.
"The new software employed was a very costly and complex project. However, taxpayers should expect that there is a high level of diligence applied to get their tax obligations right. Let's hope that the department is devoting urgent resource to correct these issues".
======================================================
Poll: Are our Kiwi summer holidays helping us recharge, or holding the economy back? ☀️🥝
There’s growing debate about whether New Zealand’s extended Christmas break (and the slowdown that comes with it) affects productivity.
Tracy Watkins has weighed in ... now it’s your turn. What’s your take? 🤔
-
73.2% We work hard, we deserve a break!
-
15.7% Hmm, maybe?
-
11% Yes!
Wayne Brown backed by billionaires and developers in $611k campaign haul
Celebrities, billionaire Graeme Hart and a who’s who of property developers each gave up to $50,000 to fund Wayne Brown’s mayoral re-election campaign.
Electoral returns made public today show Brown was flush with about $606,000 in campaign funds, while his only serious competitor, Whau councillor Kerrin Leoni, received just $16,076 in four donations over the $1500 declaration limit.
She relied heavily on donations of less than $1500 to raise $83,111.83 to run her campaign, while Brown spent $323,872, with nearly $280,00 left over from his wealthy donors.
Leoni, a low-profile first-term councillor, stood little chance against the high-profile Brown, who romped home for a second term by a margin of 100,000 votes.
Among the donors who gave $5000 to Brown were former All Black and Waiheke resident Marc Ellis, and Black Knights Football, which refers to Auckland FC, of which former All Black Ali Williams and his wife Anna Mowbray are minority co-owners.
Williams attended Brown’s election-night party at the West End Tennis Club at Coxs Bay, a short walk from the $24 million coastal home he shares with Mowbray.
Through his Rank Group company, Hart, who is worth an estimated $12.1 billion, gave $50,000 to Brown’s campaign. Property investment firm Tramco Group, whose directors own big landholdings on the Auckland waterfront, also chipped in with $50,000.
Other donors included Precinct Properties ($10,000), engineering firm BECA ($5000), Park Hyatt Hotel ($18,400), Hancocks Wine ($8000), Golf Warehouse ($20,000), Bayleys Real Estate ($10,000) and Hopper Developments ($5000).
Leoni, who was the Labour councillor for Whau but stood as an independent in the mayoral race, received donations from former Auckland Mayor and Labour leader Phil Goff ($1500), former Labour minister Judith Tizard ($5000) and longtime Labour operative Greg Presland ($7576).
She said Brown had the advantage of building relationships during his first term to raise donations, but she was proud of obtaining 20% of the vote by raising and spending $83,000.
The greater handicap during the election campaign was the lack of mainstream media coverage, with live television debates largely watched by older people, who formed the largest group of voters, she said.
The election resulted in the lowest super city turnout of under 30%.
Leoni, a mother of twins who has degrees in politics and economics, Māori development and social services, said she was having a break from the council to refocus and would decide on what to do next in the New Year.
Brown, who has said he will not seek a third term, declined to say what would happen to the nearly $280,000 left over from his campaign, saying he does not comment on other people’s donations, except to say they were a sign of the level of support for what candidates stood for.
Auckland Council electoral officer Dale Ofsoske said there were no rules governing how candidates used leftover campaign funds, though many choose to keep them for future campaigns.
Candidates could do what they liked with the money, he said.
Three years ago, Brown raised $310,000 in donations and had to dig into his own pocket to top up the $470,00 cost of his campaign.
Donations of $10,000 or more to Wayne Brown
======================================
Tramco Group - $50,000
Rank Group - $50,000
CP Group - Aphi Funds manager - $25,000
Peninsula Capital $25,000
Knight Investments Ltd - D Nakhle - $20,000
Hugh Green Ltd - $20,000
Stonewood Group - $20,000
Golf Warehouse - $20,000
Aedifice Development - $20,000
AHL Park Hyatt Hotel - $18,400
Clifftop Services - PC Cooper - $15,000
Mr MJ Todd - $15,000
Gilligan Rowe & Associates - $11,000
Liu Vincent - $10,000
Southside Group - Chris Jones - $10,000
Van Den Brink - $10,000
Williams Corporation - M. Horncastle - $10,000
Precinct Properties - $10,000
Oyster Capital - $10,000
Bayleys Real Estate - $10,000
N McKenna - $10,000
Donations of $1500 or more to Kerrin Leoni
====================================
Greg Presland - $7576
Judith Tizard - $5000
Te Ata Thompson - $2000
Phil Goff - $1500
====================================================
Brain Teaser of the Day 🧠✨ Can You Solve It? 🤔💬
How many balls of string does it take to reach the moon?
(Peter from Carterton kindly provided this head-scratcher ... thanks, Peter!)
Do you think you know the answer? Simply 'Like' this post and we'll post the answer in the comments below at 2pm on the day!
Want to stop seeing these in your newsfeed? No worries! Simply head here and click once on the Following button.
Loading…
