DO YOU HAVE TO FILE A TAX RETURN?

Most people do not need to file an Income Tax Return. This is due to the increased accuracy of PAYE (Pay As You Earn) tax deducted on wages and salaries, including pensions or superannuation. You do not even have to file a PTS (Personal Tax Summary) provided your income from interest is less than $200 and RWT (resident Withholding Tax) has been deducted at the correct tax rate.
 
There are however exceptions to this:

• If you have claimed or wish to claim WFFTC (Working For Families Tax Credit)
• If you have a student loan
• If you have a child support liability

 
If you think that you might be entitled to a refund it is possible to file a PTS direct online with the IRD at www.ird.govt.nz. There are also some companies advertising that they can help you claim tax refunds for a percentage of your refund.
 
You must file a full tax return (IR3) if:

• You entered or left New Zealand during the year eg. new immigrants
• You are in “business” eg have schedular payments (formerly Withholding Tax).
• You have income not taxed at source eg rental property
• You have income from overseas.

 
Always use a Chartered Accountant or CPA for professional assistance as anyone can call themselves an accountant regardless of their lack of qualifications.
 
If you are unsure of your filing requirements or want assistance with completing your tax obligation, make an appointment to see how we can help.
 
Grant Witheford
Bay Accounting & Taxation Ltd