Quote Originally Posted by Snoopy View Post
You assume wrongly. Providing your PIR rate is correct, there is no need to declare any of your PIE income in your IR3.

If your PIR rate is 17.5%, but your income gets into the higher than $49k tax bracket, then you may be required to declare your PIE income to correct the amount of tax that should have been deducted at source. But if you inform all the institutions which hold your PIE income generating income units of your correct PIR rate, then there is no need to declare any PIE income in your tax return, irrespective of how high your income gets.

It remains optional to declare your PIE income in your IR3 at any time. But this is done for a special situation where some taxpayers can make use of PIE tax credits to offset tax payable from other income sources. For most people it does not make sense to declare their PIE income in their IR3.

SNOOPY
Thanks Snoopy. Just to clarify my thinking, I can't ignore any of the listed PIE dividends when calculating my PIR?

I was taken back to see the size of the gross BOT taxable dividend declared last week. This is when bonus shares are issued in order to utilise the accrued imputation credits. Immediately the shares are then cancelled. However, the gross dividend. declared but not paid out, can be sufficient to plunge one into the next tax bracket. This alters the PIR relating to the PIE fund income.

Does anyone else see this as a taxation anomaly?