Thousands still being overtaxed by IRD

Press Release – NZ Accounting

Thousands still being overtaxed by IRD claims business accountant.

Thousands of taxpayers are still being overtaxed despite the 2bn claimed back in tax refunds last year says Michael Fresnel, Proprietor, NZ Accounting.

He believes the increase has to do with the many businesses selling the service of communicating with the IRD to assist the taxpayer to get a refund rather than the proactive attitude of the IRD.

“For a number of months I have been trying to get the IRD to tell me how many people who pay witholding tax, or shedular payments, are being overtaxed. They have not been forthcoming,” says Mr Fresnel.

He believes there are thousands of people being overtaxed in that category of taxpayer, because they are not aware they can claim expenses against their income.

“Many people who pay witholding tax or schedular payments incur legitimate business expenses, including people who are fishermen, salespeople, and agricultural, horticultural or construction workers.”

In addition to not claiming expenses, Mr Fresnel says there are some people who are also breaking the law by not being GST registered - but he questions whether the IRD are doing enough to inform this group.

“The IRD know exactly how much people who pay witholding tax or shedular payments are turning over. Do they contact those taxpayers concerned, or will it catch up with them later?”

http://www.nzaccounting.com/

ENDS

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