• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 3 of 3
  1. #1

    Default Proposed Tax changes for Trusts

    New tax fight looming
    The Trustees Association is gearing up to fight proposed tax changes which will see the tax rate on family trusts rise from 33% to 36%.

    08 September 2006

    It is beginning a nationwide advertising campaign this to block what it calls “an inheritance tax in disguise”.

    The association is seeking support from trustees, beneficiaries, and professional advisers for the association’s drive to oppose an increase in the family trust tax rate.

    Association executive officer Errol Anderson said the Inland Revenue Department planned to raise family trust tax to 36% while lowering the company rate to 30%.

    “This is an inheritance tax in disguise which will hit families hard,” he says.

    “It is unacceptable for the rich, along with companies, to get a tax break at the expense of family trusts.

    “More than 244,000 trusts are registered with the IRD. Most of them are family trusts where the minor beneficiaries - children - are already paying a corporate tax rate of 33%. “Under this proposal, those children will pay more tax than companies and large corporate bodies.”

    Anderson said the association had created a new membership classification for family trustees and had launched a campaign fighting fund. In advertisements due to run this week, the association says trustees have a duty to take action to protect the income and capital of their trust.

    It urges trustees and beneficiaries to join the association and contribute to the fighting fund to force an Inland Revenue and Treasury rethink.

    The association has made a submission to the Commissioner of Revenue opposing proposals to increase the trust tax rate.

    The Trustees Association represents registered and professional trustees, administrators, trust companies and professional advisers.
    http://www.goodreturns.co.nz/

  2. #2
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    3,936

    Default

    There is quite a few politicians using trusts for there wealth. This should mean they might resist any temptation to raise any tax rates also.

  3. #3
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Simple solution is to vote national.

    It makes no sense for the top tax rate, trust rate and company rate to be different as it creates distortions. This is the sitaution we will have as they propose bringing down the company rate to match australia (30%. Trust wil then be 335 and individual 39%).

    To compensation they want to increase trust (from 33 to 36% and reduce individual (from 39 to 36%). What they should really try to do is just get the individual back down to 33%. How much would they loses by doing this - a bit from people who can afford it but these are also people who dont use the services provided by the tax dollar.

    Lunacy I say but what do you expect.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 14
    Last Post: 19-03-2018, 09:51 AM
  2. Proposed LVR limits
    By brokerman in forum Finance, legal and tax (NZ)
    Replies: 78
    Last Post: 04-06-2014, 11:02 AM
  3. video proposed expressway thru Kapiti
    By donna in forum General (NZ)
    Replies: 2
    Last Post: 08-08-2011, 02:12 PM
  4. Trusts 101: Trusts and Corporate Trustees
    By Bluekiwi in forum Finance, legal and tax (NZ)
    Replies: 8
    Last Post: 04-03-2011, 09:31 AM
  5. Current Status of Proposed CBD Developments
    By Mr_bond in forum Commercial Property (NZ)
    Replies: 13
    Last Post: 31-03-2010, 04:21 PM
  6. Proposed changes to GST rules on Land Sales
    By Findspace in forum Commercial Property (NZ)
    Replies: 3
    Last Post: 07-11-2009, 10:14 PM
  7. Trading trusts and proposed IRD changes to associated persons rules.
    By SuperDad in forum Finance, legal and tax (NZ)
    Replies: 8
    Last Post: 17-03-2008, 08:53 AM
  8. Proposed changes to minor dwellings
    By Heg in forum Property Investment (NZ)
    Replies: 16
    Last Post: 26-01-2007, 10:38 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •