Why you might have had tax written off that you didn't know about
Up to half a million New Zealand taxpayers have received automatic tax write-offs due to calendar quirks involving extra paydays. Inland Revenue adjusts these bills for those paid weekly or fortnightly, though the policy does not apply to those with complex tax situations.
Why it matters
This highlights the impact of calendar-based payroll anomalies on tax compliance and the administrative measures taken by tax authorities to mitigate them.
Up to half a million taxpayers have had tax bills written off because of additional paydays - and many may not have been aware of it.
Some teachers have been handed tax bills for the most recent tax year because they received an extra fortnightly pay.
Inland Revenue writes off up to $420 of tax for people paid fortnightly or $250 for people paid weekly, if it is owing only because of a quirk of the calendar.
But people who have other income that is not correctly taxed, or who receive Working for Families, use a tailored or incorrect tax code or move employers do not receive the write-off.
An Official Information Act request shows that in the year to March 189,200 people had a combined $30.9 million of tax written off for this reason.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in