{"id":15996,"date":"2025-12-11T10:25:20","date_gmt":"2025-12-10T21:25:20","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=15996"},"modified":"2025-12-11T10:25:20","modified_gmt":"2025-12-10T21:25:20","slug":"7000-pensioners-overcharged-in-another-inland-revenue-error","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=15996","title":{"rendered":"7000 pensioners overcharged in another Inland Revenue error"},"content":{"rendered":"<p>Almost 7000 pensioners have been affected by another Inland Revenue error.<\/p>\n<p>Last week,\u00a0<i>RNZ\u00a0<\/i>reported that\u00a0<a href=\"https:\/\/www.rnz.co.nz\/news\/business\/580920\/ird-error-means-incorrect-tax-for-thousands\">4500 people had overpaid tax<\/a>\u00a0after their imputation credits had been incorrectly recorded in their prep-populated tax returns.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<ul>\n<li>What is productivity? And are Kiwis really so bad at it?\u00a0<a href=\"https:\/\/www.rnz.co.nz\/podcast\/no-stupid-questions\/2025\/What-is-productivity-And-are-Kiwis-really-so-bad-at-it?\">Listen to No Stupid Questions with Susan Edmunds<\/a><\/li>\n<\/ul>\n<p>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.<\/p>\n<p>He said he did not think a lot more about it but when he saw\u00a0<i>RNZ&#8217;<\/i>s reporting of the other error, he realised that there had been at least two this year.<\/p>\n<p>&#8220;This really starts to suggest a deficiency in change control of IRD systems.&#8221;<\/p>\n<p>Another couple said they wanted assurance that Inland Revenue had taken steps to stop it happening again.<\/p>\n<p>Inland Revenue said 6778 people were affected.<\/p>\n<p>&#8220;There was an issue identified earlier this year where we were not populating the &#8216;earnings not liable&#8217; figure correctly for some customers. We fixed those returns for the customers in July 2025.&#8221;<\/p>\n<p>Chartered Accountants Australia New Zealand tax leader John Cuthbertson said ACC was not paid on NZ Super because it was not liable income.<\/p>\n<p>&#8220;However, if you&#8217;re working and receiving NZ Super, your earnings from that work do attract levies.&#8221;<\/p>\n<p>&#8220;The advancements in digitalisation and MyIR have been quite incredible, except when it goes wrong like this. You shouldn&#8217;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 &#8216;google it&#8217; but many taxpayers are now using AI to do a basic check of their tax returns, asking simple questions like &#8216;Should I pay &#8216;x&#8217; levy on &#8216;y&#8217; income?&#8221;<\/p>\n<p>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&#8217;s system.<\/p>\n<p>&#8220;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&#8217;s hope that the department is devoting urgent resource to correct these issues&#8221;.<\/p>\n<p>Source: RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Almost 7000 pensioners have been affected by another Inland Revenue error. Last week,\u00a0RNZ\u00a0reported that\u00a04500 people had overpaid tax\u00a0after 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. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":15997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[],"class_list":["post-15996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/15996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15996"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/15996\/revisions"}],"predecessor-version":[{"id":15998,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/15996\/revisions\/15998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/15997"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}