Revenue Minister Stuart Nash needs to take some responsibility for New Zealanders overpaying tax on KiwiSaver and ensure they are reimbursed, National’s Revenue spokesperson Andrew Bayly says.
“The Minister has known about people overpaying tax on their investment (PIE) income since July last year. This followed a group of financial planners stating they estimated default KiwiSaver account holders had overpaid to the tune of $70 million.
“New Zealanders shouldn’t pay any more tax than necessary. Historically refunds were not made because the system couldn’t cope with them, however the new IT system doesn’t have this restriction.
“The Minister says that repayments can’t be made because a piece of 2004 legislation prevents it. Mr Nash has had multiple opportunities to change this given there are up to four tax bills a year, including one before Parliament at the moment where the change could have been made.
“Inland Revenue is responsible for those who have been underpaid and they should not be made to pay this back.
“It was remarkable that the Minister could not say at Select Committee just a week ago the extent of the overpayment. It’s patently unfair that Kiwis have been taxed more than they should have. It has only come to light as a result of pressure on Inland Revenue. This is a Minister who is not leading but responding to pressure.”