2008 media releases
Most Working for Families recipients not charged interest for overpayments
11 November 2008
The majority of Working for Families Tax Credits recipients who are overpaid by Inland Revenue are not charged interest, said Inland Revenue Group Manager Assistance David Udy.
Overpayments can arise when people's income or family circumstances change during the year. ''We rely on people to tell us when that happens. We square everything up at the end of the financial year, and let people know their situation at that time.''
A media report this morning suggested that all recipients including beneficiaries who were overpaid by Inland Revenue incurred 14 per cent interest.
Mr Udy said no interest was charged if the overpayment was less than $100, and three quarters of the overpayments were less than $94. Recipients are permitted to receive up to $50 over their entitlement.
Recipients receive a final statement for the year in July or August, and have until 7 February to repay any overpayment. ''Interest does not begin to be added to any money outstanding until 7 February the following year,'' said Mr Udy.
Inland Revenue has the discretion to write off overpayments if there is evidence of financial hardship.
''People can ring us on 0800 227 773 to tell us about any change in circumstances, or they can tell us via an online service,'' said Mr Udy.
Beneficiaries receiving Working for Families Tax Credits are not required to repay any overpayment, unless they are receiving income from other sources, or if there have been repeated overpayments arising from Inland Revenue not being told about changes of circumstances.
Approximately 380,000 families receive Working for Families Tax Credits. Overpayments are steadily falling as a percentage of payments, dropping from 41 per cent in 2004 to 27 per cent in 2007. ''This equates to about 43,000 families for the year to March 2007.''
For further information:
Adrienne Perry
(04) 890 1698
(029) 890 1698
Catherine Delore
(04) 890 1743
(029) 890 1743
Catherine.Delore@ird.govt.nz
Other media releases this year
- Accountant sentenced for tax evasion
- Invercargill accountant jailed for tax evasion
- Dairy owner sentenced for hiding half a million
- Tauranga court jails man for tax evasion
- Former Kaikohe farm manager jailed for tax evasion
- Auckland plasterer jailed for tax evasion
- New callback service rolled out across Call Centre
- Former employee sentenced
- KiwiSaver report released
- Inland Revenue expands e-services
- Do-it-yourself tax refunds
- Employers reminded about new tax rates
- Former Inland Revenue employee pleads guilty to corruption
- Sentencing strong message for contractors
- Accountant jailed for defrauding clients and Inland Revenue
- Inland Revenue pilots callback system to help customers
- Inland Revenue proposes changes to company tax return
- Agricultural contractor sentenced
- Jail for horticultural student
- Tax fraud results in jail term
- Thousands apply for student loan amnesty
- Early Working for Families Tax Credits payments
- Inland Revenue wins People's Choice NetGuide web award for second time
- Waikato couple sentenced for tax evasion
- Inland Revenue warns about income diversion
- Report of investigation of an error in tax revenue numbers
- Tax credits for people made redundant
- R&D tax credit goes live
- Student Loan amnesty - last chance to apply
- Revised financial statements
- Tax advice for investors in failed finance companies
- Tax advice for property investors
- Provisional tax gets easier
- Early Working for Families Tax Credits payments
- IRD numbers about to get longer
- Tax authorities work together to stop international tax evasion
- Inland Revenue helps drought-affected farmers
- IRD numbers available at NZ Post and AA
- Inland Revenue warns against divulging personal details
- Second jail term for major tax scam
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 14 Nov 2008
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