The Revenue Minister Peter Dunne today confirmed by media statement that gift duty will be abolished. The legislation abolishing gift duty will be passed this month and will take effect from 1 October 2011. The Government has assessed the impact of the repeal of gift duty on income tax, creditor protection and social assistance and [...]
Generally if you give someone a substantial gift you will have to pay gift duty. However, if you make a gift to a charity you do not have to pay gift duty. For example, a society (XYZ Society Incorporated) can transfer land to a charity (XYZ Trust) for free without paying gift duty. The society [...]
In my Blog on trusts tainted by new associated persons rules I discussed one of the outcomes of the amendment to the “associated persons” rules in the Income Tax Act 2007. The main consequence of the amendment is that a person who is a dealer, developer or builder will “taint” persons he or she is [...]
The Government is considering repealing gift duty. Gift duty is a tax that you must pay when you give away more than $27,000 worth of property in one year. This may be by cash, forgiving a debt, transferring a house or other property to your trust. The original purpose of gift duty was stop people [...]
The GST rate is probably increasing from 12.5% to 15%. We should know for sure by this Thursday (20 May 2010) when the Government announces the Budget. The increase is likely to be effective from 1 October 2010. The GST rate increase could not come at a worse time. We are still suffering from the [...]
Legislation has been passed amending the definition of “associated persons” in the Income Tax Act 2007. Trustees are now associated with a trust if they hold the power to appoint or remove trustees. One of the consequences is that a trustee who is a dealer, developer or builder will “taint” the trust with that status [...]
