What is investment income reporting? | March 2024 – Tax Alerts
Correcting errors
If you make an error when reporting investment income information, Inland Revenue has summarised the options to rectify this. Depending on the error, it can be corrected in a future return, or it may require a previous return to be amended.For errors made in the same tax year, errors can be corrected in a future return by the next reporting date.
The original return will need to be amended if the error relates to:
- Using the incorrect IRD number;
- Missing or incorrect income information;
- Using the wrong tax type (not rate – e.g. if AIL was deducted instead of NRWT); or
- Relates to a tax year earlier than the previous year.
An amendment to the original return is also required if the error exceeds the greater of $2,000 or 5% of withholding liability for RWT or NRWT.
If you do not deduct enough tax from a payment due to an error, this can be corrected by reducing a later payment to the payee, recovering an amount from the payee, or adjusting the amount of a non-cash dividend that is subject to tax, as long as the amount doesn’t exceed the greater of $2,000 or the 5% threshold detailed above.
If you withhold too much tax, you can pay the excess amount to the payee before 20 April after the end of the tax year, if you have not provided the payee a withholding tax certificate or dividend statement. Include the refund amount in the next return for the same payee to Inland Revenue. If you do not pay the refund by 20 April you need to advise Inland Revenue.
Filing the investment income return
Depending on the volume of transactions, investment income returns can be filed in one of three ways:
- myIR (if less than 2,000 lines per filing instance);
- CSV file upload; or
- Gateway services (automated submission from the payer to Inland Revenue).
If you have any questions, please contact your usual Deloitte advisor.
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