I just discovered that my PIR rate is lower than it should be at my bank. It has been this way for a few years. I am currently earning around $40 a month in interest.
Do I need to bother declaring this or taking any action with regards to the IRD it should I just update to the correct PIR rate.
I don't file any tax return.
Posted Jun 1, 2017, 5:58 AM UTC
Note that the PIR (prescribed investor rate) rate is for PIEs (portfolio investment entities), such as managed funds and KiwiSaver funds - see http://www.ird.govt.nz/toii/pir/ and for what to do if you have been on a lower rate than you should be.
If you receive interest from a bank account then RWT (resident withholding tax) is deducted. See http://www.ird.govt.nz/rwt/receiving/how-much/
Assuming you are New Zealand resident... 8-)
You should log onto ird and request a personal tax summary (PTS) and on that you will put your bank interest earned and tax paid for the last tax year (1 April 2016-31st March 2017). You legally have to do this for income sources above $200 per year that you did not pay the correct tax on. It will be an easy process and you'll find out if you're due a tax refund as well. You will then have to pay the extra tax that you owe (or it will be taken out of a refund).
You should update your pir with the bank as well.