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Personal Tax Summaries are being sent out to certain groups of taxpayers in July 2000 and student loan holders in November 2000 by the Inland Revenue Department. These will be sent directly to tax agents when a taxpayer is linked to the agent.

Personal Tax Summaries will be sent to taxpayers that IRD knows need a \"square-up\" at the end of the year, including those who:

• received Family Assistance from IRD, or
• used an incorrect tax or special tax code, or
• received a strudent loa and are entitled to a base interest write-off, or
• received lump sum payments or secondary employment income taxed at the wrong rate, or
• were on a casual agricultural employee’s or election day worker’s tax code and had more than $200 income.

The Personal Tax Summary lists the total earnings paid and PAYE deducted by each employee, and also shows whether the taxpayer has tax to pay or is due a refund.

A Personal Tax Summary which results in tax to pay becomes a formal assessment at the terminal tax date, or two months from the date of issue, whichever is later. A Personal Tax Summary which results in a refund becomes a formal assessment either 30 days after the date for refunds of $50 or less, or on the day the refund is confirmed for refunds over $50.

The following taxpayers should request a Personal Tax Summary:

The Personal Tax Summary must be requested before the terminal tax date.

From August 2000, some taxpayers may wish to consider requesting a Personal Tax Summary, as they may be entitled to a refund. This includes taxpayers who:

• have been employed or worked for only part of the income year, or
• have had a gap between employment during the income year,
• have had income such as interest or dividends taxed above their marginal tax rate, for example because they earned below $38,000, or
• wish to claim expenses such as income protection insurance, or
• have reason to believe their income from employment has been overtaxed, for example because of faults in their employer’s PAYE system.

The taxpayer or their agent must check the earnings and PAYE information on the Personal Tax Summary and if incorrect, adjust it and inform IRD by phone before it becomes a formal assessment. A new one will then be issued.