The Inland Revenue says it is working on changes that would allow it to tell KiwiSaver providers directly if their members are on the wrong tax rate.

But the move will come too late for those who are estimated to have lost a collective $70 million in overpayments to the tax department.

This week it emerged 450,000 people have been paying the wrong prescribed investor rate on their portfolio investment entity (PIE) investments which include KiwiSaver.

The Inland Revenue has sent 120,000 letters to people advising them of the issue.

Advertisement

Some will have a tax bill to pay as a