Robert Russell, Commissioner of Inland Revenue, has made statements reminding those making donations to tsunami stricken Samoa that they could be eligible for a tax refund. Robert Russell believes that many of those who are making donations are unaware that they are able to claim a refund on their donation.

Further, it was emphasized that there is no longer an upper limit on the amount that can be claimed back from a tax donation. As long as the donation is lower than the individual’s annual taxable income and above $5, they would be able to claim a third of the amount donated, if receipts are kept.

The complete list of refundable charities can be attained from the IRD, along with the necessary refund claim information.

The Inland Revenue Department (IRD) has completed an overhaul on their available online services, expanding the range of services provided and decreasing tax refund wait time.

The IRD has previously mandated that any tax refunds due that were valued at over NZ$200 would require confirmation over the phone. This task can now be completed online, along with assigning bank accounts for the refunds. According to the IRD, the 2008 business year saw over one million letters sent out for personal tax refunds. Their online innovation is aimed directly at reducing redundancy within this cycle.

Commenting on the change, Charles Ronaldson, Inland Revenue Group Manager Assistance said “The enhancements to Inland Revenue’s online services mean customers can handle their tax affairs in their own time and makes claiming a tax refund even easier.”

In an effort to foster what he calls an “American giving culture”, Prime Minister John Key has said that those who could not bring themselves to spend the new tax cuts, or are otherwise unlikely to need it survive, should consider donating it to charity. He also pointed to a figure claiming that almost 60% of those donating in any given year are likely to not know about the tax rebate that they are automatically entitled to.

While at the moment only a third of what you donate to charity can be claimed as a tax rebate, there have been other suggestions surfacing in regards to possible new rebates. Key amongst these was revealed by Revenue Minister Peter Dunne recently. Other than just donating money, “gifts in kind” such as items, artwork or even professional time could be claimed under a rebate. Though no official word on this has been given, and will not be likely until after the release of the budget.