Inland Revenue says 450,000 people have been paying the wrong rate of tax on their KiwiSaver accounts and other managed funds. Cavill said some of the people Inland Revenue was contacting might instead be due refunds "but Inland Revenue can't break it down at this stage nor can we provide an average bill amount". "KiwiSavers unbeknownst to us have been paying a lower PIR tax rate than we should – though no one told us – and as a result have been pinged with a tax bill," she said. She had been paying 10.5 per cent tax on her KiwiSaver account when she should have been paying the top rate of 28 per cent, she found out. That seemed unfair, especially given that most people who overpaid PIR tax would be on low incomes, he said.

Source: Stuff June 04, 2019 03:59 UTC