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Inland Revenue

Tax Policy

Personal tax summaries

Clauses 62(2), 63 and 64

Issue: Support for proposal


(10 – KPMG)

The submitter supports the change to allow Inland Revenue flexibility in issuing personal tax summaries (PTSs). However, taxpayer perception should be noted, especially since the selective issue of income statements may lead to taxpayers not receiving refunds they are otherwise entitled to.


These changes relate only to categories of people to whom Inland Revenue automatically issues a PTS. Nothing in the proposals will affect the taxpayer’s ability to request a PTS in order to receive a refund.

Officials note that taxpayers who automatically receive a PTS showing they have tax owing must pay that tax.

On the other hand, taxpayers who are not automatically sent a PTS (or who are not required to request a PTS) can first check to see whether they will receive a tax bill or a refund. Individuals can do this by requesting a summary of earnings from Inland Revenue and checking the online refund calculator.

If the calculation shows that they would receive a tax bill, they do not need to request a PTS and therefore do not need to repay under-withheld tax. If it shows that they would receive a refund, they can then request a PTS.


That the submission be noted.

Issue: Proposal is unnecessary


(5 – New Zealand Institute of Chartered Accountants)

The proposal is unnecessary because the submitter cannot foresee situations where Inland Revenue should be using its discretion to exempt taxpayers from filing tax returns.


Currently, Inland Revenue is required to issue a PTS to several categories of individual taxpayers. Categories of taxpayers who must automatically receive a PTS include those who have had insufficient tax withheld on $200 or more of income, or who have earned employment income using certain tax codes.

However, issuing a PTS is unnecessary for categories of taxpayer who are no more likely to have had the incorrect amount of tax withheld than any other category. These include spouses of Working for Families recipients and people who have student loans.

It is not administratively sustainable to continue to automatically send unnecessary PTSs. If Inland Revenue is to continue to meet government and public service expectations within likely budgetary limits it needs to be able to make sensible business decisions that are risk-based. Non-discretionary statutory requirements as to when interventions are required are inconsistent with this approach.


That the submission be declined.