The Taxation Principles Reporting Bill was introduced to parliament on 18 May 2023, and has since been reviewed by the Finance and Expenditure committee. If passed, it will require the Commissioner of Inland Revenue to report on New Zealand’s current tax settings based on specific principles. A hybrid reporting model will be used where a […]
Taxation Principles Reporting Bill Read More »
Given that either Labour or National are likely to enter into coalition agreements of some form with the Green Party and Act, respectively, and the tax policies of the two main parties are more ‘vanilla’, it is worth reviewing the tax policies of the two minor parties as this is where unexpected change may come
Tax policy from two sides of the political aisle Read More »
The buoyant covid subsidy funded days are behind us, New Zealand has entered a ‘technical’ recession. This was reinforced by the recent announcement that New Zealand’s corporate tax paid was almost 11% down in the 11 months to May relative to Government expectations. A drop in the corporate tax take reflects the declining profits of
Tax ourselves out of recession? Read More »
Inland Revenue made the headlines end of April 2023 with the release of its report on the amount of tax paid by our high-wealth individuals (HWIs). The findings were that HWIs’ overall effective tax rate when taking into account all sources of income, including unrealised capital gains, is 8.9%. The Treasury simultaneously released a number
Snippets: Global tax rates Read More »
Using a trust to manage and protect a family’s business and personal assets has been a common practice in New Zealand. However, with the recent increase in the amount of information required to be supplied to Inland Revenue, and now the Government’s decision, as part of its 2023 Budget, to increase the trust tax rate
Trust distributions and tax rate change Read More »
In response to the adverse weather events that hit in January and February this year, a number of tax concessions were released on 14 March 2023 in an attempt to provide some relief to those who were impacted. The events have been collectively given the legislated name “North Island flooding events”, which has been defined
Flooding events tax concessions Read More »
In New Zealand, a marginal tax rate system is used to tax an individual’s income, i.e. the tax rate increases as one’s income increases. As at today, the marginal tax rates are as follows: Taxable income bracket Applicable tax rate $0 to $14,000 10.5% $14,001 to $48,000 17.5% $48,001 to $70,000 30% $70,001 to $180,000
Snippets: Marginal tax rates Read More »
Private schools will typically be registered as a charity. As such, parents will sometimes treat payments to the school as a charitable donation for tax purposes. Inland Revenue are making it clear on its interpretation on this subject through the release in October 2022 of QB 22/09 – Income Tax – Payments made by parents
Snippets: Private school donations Read More »
In New Zealand the provisional tax regime is designed to help taxpayers manage their income tax obligations, by requiring certain taxpayers to pay tax in instalments throughout the year, instead of one large lump sum at the end of the year. This regime applies to taxpayers who have residual income tax (RIT) of greater than
Provisional tax regime Read More »
In November 2022 Inland Revenue issued TDS 22/21, a Technical Decision Summary on whether the profit from a subdivision was subject to income tax and GST. TDS 22/21 covered a dispute involving a subdivision by the taxpayer of land into two lots. The taxpayer had acquired the property for the purpose of renovating and expanding
IRD – Whether a subdivision was subject to income tax and GST Read More »