IRD treatment of PIE dividends

[SPC]

I have struck an issue with how IRD are treating PIE income from NZX listed PIEs for Tax Year 2019 2020 and Im wondering if other PIE holders who complete EOY individual tax returns using MYIR are also affected. I can't be the only investor affected by this issue.
The issue is that for some reason IRD are populating the dividends data in MyIR with PIE dividends despite these being exempt and treating them as NON pie dividends resulting in an increase in assessable dividend income. IRD are claiming currently there isn't a problem. They have never previously appeared. They are disclosed voluntarily should investors choose too.
I'm wondering if any other ST members holding listed company PIE investments have logged into their MyIR yet and checked if their non declarable PIE divs have also mysteriously appeared in 'Dividend income'.
Example PIE dividends affected are ARG, BRM, MLN.
Due to bulk data automation these days it must be affecting other PIE investors.

[kiwico]

I've long completed an IR3 each year and the data carried through by the IRD for dividends was woeful this year. I understood this new approach was to remove the need to do a return but instead it appears to promote the need for a return to correct the IRD's wrong assumptions / data collection. [Unless there is an easier way to fix their mistakes.]

[blackcap]

I've long completed an IR3 each year and the data carried through by the IRD for dividends was woeful this year. I understood this new approach was to remove the need to do a return but instead it appears to promote the need for a return to correct the IRD's wrong assumptions / data collection. [Unless there is an easier way to fix their mistakes.]

I am in the same boat. Luckily I also do an IR3 so an aware of the issues. There were dividends pre-populated from TRA, but not other companies. Growing pains maybe, or other problems with the IRD system. But not all dividends get through so you really do need to still work out your own dividend income and advise the IRD of the correct amounts.

[Dave]

I have the same issue with a couple of PIEs in dividends (but not much of the dividends that should be there). I think was same last year and I filed online with the correct info and got a refund within a couple days. Interest income looks ok in mine but generally I ignore it all and continue to file an IR3.

[Grimy]

And same here. PIE companies included, but almost all of my normal non-PIE dividend payers are not included. And, a few investments they have got totally wrong figures for.
Fixed interest/bonds seem to be almost correct.
It was a bit messy last year, but this time round it's been a shocker!
A lot more work sending attachments to explain why I don't agree with their figures...…..
And if last year is anything to go by, they will probably completely ignore my figures (and attached proof), and just go with what their system says.
They said last year that this year's return information would be a lot more complete and correct compared to last year.
Yeah, right!

[Southern Lad]

Provision of investment income data to IRD has been voluntary up to 31 March 2020 but compulsory from 1 April 2020 onwards. See https://www.ird.govt.nz/income-tax/w...m-1-april-2020

Therefore data the IRD hold for the 2020 tax year won’t be comprehensive- it only includes dividends paid by those companies who have voluntarily supplied dividend data. Don’t rely on it to complete your 2020 tax return however the position should be much better for the 2021 and future tax years.

Care does need to be taken around deciding whether to include in your tax return PIE income from both listed PIE’s and multi rate PIE’s. With listed PIE’s, it will generally work to your advantage to include taxable distributions if your top marginal rate is 10,5% or 17.5% (i.e. individuals with total taxable income less than $48,000) whereas with multi-rate PIE’s you can’t include the income if the PIR you used was too high but your are required to include the the income if your PIR was too low. Selecting the correct PIR is not straight forward as it requires you to calculate income (including PIE income) over more than one year.

It’s useful if the IRD system has the data so you can check but unhelpful if it includes the PIE income in your tax calculation where you either aren’t required to include it or it’s in your interests to choose not to include it.

[artemis]

There is a field (Confirm) on the IR3 to explain why any info already held by IRD is changed. I assume there is a manual check and if the reason is eg dividends increased and if figure reported is more than the one held the return will get the tick. If less a further check. Next year should be a divvy match in most cases.

Just assuming but makes sense to me.

[SPC]

Yes thanks SL for that info. In my case I did not wish to include listed pie income in my return and never have before. However this year IRD have captured a 'partial' but incomplete view of my listed PIE divs and populated the dividends field. I have asked IRD to remove the PIE divs but they won't despite my protest.
So now it looks like I'll have to add all the missing div tax info for all the listed PIEs for the full tax year which dramatically alters my tax position...up a few brackets. After years of keeping these off my tax position it seems I'm being forced to disclose them even tho I don't legally need to do so under Pie tax rulings.

[Grimy]

As I mentioned above, last year I added missing information and actually had more tax to pay than IRD had calculated. They ignored my figures and stuck with theirs...…
And as SPC has mentioned, if you explain why something shouldn't be included they ignore that as well. On one of my investments this year they have the gross payment doubled up, but have the correct imputation credits and RWT. I'll point that out and send copies of the payments I have received, but not holding my breath that they'll correct it.
It's as though you may as well just tick the 'confirm' their figures box, as it seems they don't want to accept that I may know my figures better than they do.

[nztx]

Listed PIE dividends have also been reported as taxable dividends (along with any Imputation credits) for Sharesies
account holders as well

Having been aware of IRD Investment Reporting changes for some time, I raised with them whether they were going
to catch up with all Power Consumer Trust distribution reciprients .. an interesting situation, but where these trusts
are in place, every power account holder will have such income most years

Do the Trusts actually have correct Holder names ?
Their bank details
Their IRD Numbers ?

The answer to most of these will be I suspect now still a resounding NO

As another thought - there are instances of incorrect or erroneous Investment Income, Tax credits & Deductions
being reported under the new Regime to IRD.

There may be instances where income & tax credits / deductions have not been reported for some months to IRD.
I know of couple for the 2019/20 year to date which have required corrections by payer through to IRD & bound to be more

Always keep your own personal record of any Investment Income etc & dont be shy in challenging IRD on what they have
been fed by Investment Income Reporters, if you believe it to be incorrect or erroneous