IRD treatment of PIE dividends

[Beagle]

That does not sound good. I had no problem overriding the IRD’s dividend, imputation and witholding tax figures when filing online IR3.

Neither did I. Their system for the year ended 31 March 2020 is a complete dog's breakfast and you MUST override it if you want the correct information to be included in your return. My understanding is there is a new reporting system for all financial entities and they must report all interest and dividends on a monthly basis to the IRD effective from 1 April 2020. Hopefully the IRD's system will be far more accurate next year but people should not hold their breath for that and as always are better to check their own interest and dividend statements to ensure what the IRD have captured in their system is accurate.

[Grimy]

That does not sound good. I had no problem overriding the IRD’s dividend, imputation and witholding tax figures when filing online IR3.

I had no problem overriding/changing the incorrect figures IRD had pre-populated the form with last year.
It was when they sent the final statement, they had used their figures that were there originally, not the corrected amounts. They missed out on a couple of hundred dollars, so their problem. Just wouldn't want to see them do the same if their figures show too much tax to pay.
I run a spreadsheet for all income during the year, and print out dividend & interest copies and manually add everything up as well, to make sure they match - which they do. It is then annoying to have so many mistakes come through on the IRD statements.
And even more annoying chasing them up to correct their mistakes, but to be ignored...…
About to submit my wife's return with heaps of attachments of corrections and omissions to back up the figures I have had to override. Can hardly wait to see what comes back.
I'm sure next year will be fine :-)

[waikare]

I am with you on that. You certainly can’t trust their numbers on dividends, imputation credits and witholding tax.

I updated their figures that they had inserted regarding my dividend details, taken from a running spreadsheet I maintain through the year.

I completed my return last Thursday evening 28th May, and the money was in my account early afternoon on Tuesday, 2nd pretty good considering Monday was a holiday.
They paid out the exact amount I claimed for.

[Waiuta]

I use Sharesight's program and edit their input to agree with my interest and dividend certificates when they arrive. Their Taxable Income Report reflects that. I use these figures to file my IR3 plus any other bank interest RWT certs.
We also hold KPG and they are NOT included in the Sharesight Taxable Income Report. I asked our accountants about inclusion but they confirmed there is no need to include them.
All our shares etc are held jointly so I filed both returns in MYIR and we had our refunds within a couple of days exactly as filed. I also included the Sharesight subscription as a cost.
Hope this helps.

[Philz]

As a newby here goes
Of interest I have KFL and MLN listed pie dividends on 2019 IRD tax summary, also noted PFI on current MYIRD dividends. Talked to IRD and they basically said if listed pie has been reported then needs to be included in end of year assessment, if not reported choose if included, wasn't happy so went to a listed PIE manager and here is the response:

"I discussed the matter of the PIE dividends appearing in shareholder tax returns at length with both our Registrar (Computershare) & the IRD and unfortunately the IRD can’t fix their error.

From late last year our registrar Computershare started sending the IRD a direct feed of the distributions/dividends and other tax related details re all of the shareholders on their registrar, including the listed investment company (LIC) shareholders. Unfortunately the IRDs system can’t differentiate between dividends from a normal company verses dividends from a PIE. Once the IRD realised their problem they stopped Computershare sending through the PIE dividend data.

Unfortunately the PIE dividend data that has been sent to the IRD can’t be backed out.

The IRD are aware of the problem & have stated in writing that any shareholder/ tax payer who has PIE dividends incorrectly recorded in their IRD produced tax return/ position can request the IRD to remove them.

In the future the IRD system will be enhanced to enable PIE dividends to be separately classified, & at that point in time Computershare will resume sending our LIC shareholder dividend information to the IRD.

We understand that in addition to the above IRD error, where the registered shareholder is a Family Trust it would appear that some of the PIE dividends have been flowed through to the underlying individual Trustees of the Family Trust.

We’ve written to the IRD re the above errors, and they’ve made positive noises re trying to fix the incorrect taxpayer/shareholder outcomes, however at this stage we’ve yet to see any proof of their efforts"

Talking to another manager they were surprised the problem was still occurring in May 2020 as they understood computershare had stopped sending IRD listed pie dividend reports.

I plan to do my various IR3 IR6 returns and just enter correct figures, online drafts appear ok so far as IRD are missing heaps normal dividends so my correct figures are larger. If that dosn't work will file paper copy with correct figures. Regardless my records are correct and will stand any audit.

[Grimy]

Thanks for that Philz. Welcome to the forum.
It is a bit of a mess isn't it!
Hopefully the IRD's "in the future" and "positive noises" will eventuate, but as your PIE manager has said, I also don't see much in the way of their "efforts" either.
I did my wife's return, with lots of changes - attached all the relevant paperwork (the process took longer than the old paper system of pre a couple of years ago), and they accepted my figures. But it was a bigger mess to sort out than last year-that's for sure.

[kerryo]

I logged into myIR and could see some dividends already listed in my IR3 and all of my interest payments recorded from various banks etc.
I couldn't alter anything as my IR3, populated by Inland Revenue had not come up for review yet. They were apparently being done in batches and it could take until the end of July to get to mine. There was no mention of my surplus imputation credits being carried forward, so I rang and made an online appointment for a call back which could take 12-18 mins. A very nice girl rang back after 25mins and after hearing my story, asked if I would like to have access to my IR3 in order to correct the dividend information.
Within 15mins I had updated my dividend totals and finished and filed my online IR3.
Within 1 day I received an online letter verifying my imputation credits carried forward.
After 2 days my IR3 return was approved and my refund deposited to my bank.
I was very impressed.

[Rep]

I filed my return a few weeks ago and had a similar experience - the myIR had incomplete listing of dividends, imputation credits and RWT and also had the PIE income.
I made adjustments to include the missing dividends, ICs and RWT that increased income and added some income that wasn't taxed at source before duly paying the residual outstanding taxes.
I would echo that the Sharesight taxable income report is pretty handy for compiling and keeping track of the share income.

As an aside, I also filed for the donation tax credits for Tax Year 2020 including the receipts from the IRD approved donee organisations and after a couple of weeks I have now received my tax credits into my bank from the IRD.

[Philz]

Update on May2020 listed pie dividends from PFI appearing on myir taxable income, computershare being made aware have now somehow got IRD to delete files for this. PFI all correct now for my 2021 year, don't know but assume all shareholders would have had PFI listed PIE dividends deleted for May on IRD taxable income.

I do number of tax returns for my grandchildren and family trusts as well as my own.

I also noted a few weeks ago a PIE AMP kiwisaver double entry completely disappeared off myir 2020 for a few days then correctly appeared as single entry. Took a while to work out why totals changed but lucky I had an old print and could see differences. I have little confidence on what I see and cannot see in myir. Primary records are best source, not IRD.

[Philz]

Hi Kerryo, you my find IRD will have you marked for online IR3 next tax year and you update/change and file.