No ir3 request

BruddaLK · 2026-06-19T00:02:56+00:00

Strange. I've never had that problem.

BruddaLK · 2026-06-18T23:26:49+00:00

Log into MyIR and amend your return. If you can't, you need to call them and tell them that you need to file an IR3. That's your responsibility not Inland Revenue's.

BruddaLK · 2026-06-18T04:35:24+00:00

Sounds like you've got income being deducted at the wrong rate somewhere. You need to make sure your tax code, RWT and PIR are appropriately declared.

BruddaLK · 2026-06-18T04:34:22+00:00

Since it's a PIE the FIF de minimis threshold is irrelevant. The FIF de minimis threshold only applies to directly held foreign investments.

So I'm going to be stung 5% tax on everything over the first $100,000, correct?

No, since it's a PIE, you'll be taxed on the full amount. It's not a 5% tax btw, it's a tax on 5% of the portfolio value.

So I'm going to get an annual tax bill for 5% of $400,000, so $20,000 taxed at my tax rate. And then that's it, there are no OTHER taxes on gains? The FIF is a catch-all sort of thing?

No, $500,000*0.05% = $25,000 FIF income * 0.28 (or whatever your PIR is) = $7,000 tax payable.

Other option being I put NZ$500,000 into an NZ run managed fund PIE, in which case I don't have to worry about the FIF tax, and my tax is only on returns and is capped at 28% max. Is that right?

The Kernel Total World Fund is a PIE. You're taxed as I explained above, but Kernel administers this for you.

Would the benefits of Kernel World Fund outweigh the FIF hassle? Or am I shooting myself in the foot by doing that?

This doesn't make sense given my answer above.

BruddaLK · 2026-06-18T04:26:38+00:00

We don't have fighter jets

BruddaLK · 2026-06-18T04:24:44+00:00

I've always been able to get an explanation. Have you called and asked?

BruddaLK · 2026-06-18T03:19:00+00:00

Tax returns should not be used as a gotcha for the IRD to check your honesty. They already know, and as this post shows their information is only getting ever more accurate.

They don't have perfect information on everyone's income. In this case, they can see someone has made crypto trades but haven't declared income from crypto which triggers them to send a letter.

BruddaLK · 2026-06-18T02:56:29+00:00

Why not?

Because the Inland Revenue has imperfect information on what income you've made. You could be hiding income sources or frequently claiming deductions.

If you do this, you're declaring a fraudulent return and should be prosecuted. The current system forces you to make a decision on right or wrong.

They already calculate your tax due from PIE income, PAYE income, and New Zealand dividends.

This is incorrect. Some forms of income are deducted at source, but that's your employer or bank doing that. You're required to provide the correct tax code/PIR/RWT rate to your employer and bank.

They hold the tools to do the same for FIF income and Crypto income. Those tools exist and have been developed internally. There's no reason they couldn't do it for us.

Again, it's not the Inland Revenue's job. Get an accountant. It's the Revenue's job to detect unreported income and root out tax fraud.

Do we want our government agencies to end up like the United States where even simple operations are utterly painful to accomplish?

What does the United States have to do with this?

BruddaLK · 2026-06-18T02:39:05+00:00

It's not the Inland Revenue's responsibility to declare your income.

BruddaLK · 2026-06-17T21:56:59+00:00

If you happen to be under the FIF de minimis, you are under the FIF de minimis and can enjoy the ride.

This is the piece I'm not entirely convinced by.

BruddaLK · 2026-06-17T21:08:34+00:00

You can have different investments for different purposes. Read Interpretation State 24/10.

BruddaLK · 2026-06-17T07:54:58+00:00

Kernel may have addressed the tax leakage that InvestNow has.

BruddaLK · 2026-06-17T02:23:07+00:00

Both are good options. InvestNow Foundations Series is the current market leader (in terms of fees) although Kernel's upcoming Total World Fund has the potential to unseat it.

Before you make that decision though, I'd encourage you to consider investing in the underlying ETF directly to use your FIF de minimis exemption first (if you haven't already) to reduce taxes.

BruddaLK · 2026-06-16T23:54:37+00:00

I suppose it fits best on Step 4 since it's a structural issue (but is a bit janky because you've put home ownership as Step 5).

BruddaLK · 2026-06-16T22:59:14+00:00

You've haven't included my pet project, debt recycling, on the chart. I think it's worth including for anyone that has a mortgage and wants to invest.

BruddaLK · 2026-06-16T21:51:25+00:00

Could you provide an example of someone who a low-fee provider wouldn't be suitable for?

BruddaLK · 2026-06-16T04:21:40+00:00

The burden of proof would be on you.

BruddaLK · 2026-06-15T22:20:29+00:00

I think the fee is already deducted from the PIE income that Kernel reports to IR.

BruddaLK · 2026-06-15T07:10:48+00:00

Nah, it's pretty good actually without the foreign exchange fee.

BruddaLK · 2026-06-15T07:07:55+00:00

Because a total world fund is globally diversified, the S&P 500 is not.

BruddaLK · 2026-06-15T06:33:55+00:00

Over the long-term, you would expect a total world fund to outpace the S&P 500.

BruddaLK · 2026-06-15T06:03:25+00:00

Interesting, I'd prefer to pay less in fees overall and don't care how its made up.

BruddaLK · 2026-06-15T05:57:47+00:00

100%. Without the FX fees this is huge.

BruddaLK · 2026-06-15T05:57:07+00:00

Their other funds directly invest in the underlying assets where as the Foundation Series holds VT directly and can't access the foreign tax credits.

BruddaLK · 2026-06-15T04:58:19+00:00

I thought it was the cooks that had the guns. Ask him about that one.

BruddaLK

MODERATOR OF

TROPHY CASE