Clampdown on trust tax dodge

David Parker has struck one small blow for taxing the wealthy (Image: Getty)

Thu, 18 May 2023

The government expects to collect an extra $350 million a year in personal income tax from high income New Zealanders by raising the tax rate charged on trusts to 39%, the same as the top personal tax rate.The trust rate stayed at 33% when the top personal tax rate was raised to 39% in 2021, leading to a 50% increase in income reported as flowing through trusts in the first year of the new higher personal rate.“Ministers made clear then that if analysis indicated high income earners were circumventing the rate through greater use of trust...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Stay informed on business, government and financial developments across New Zealand.
Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On the Money: A sports star joins Craigs, Vero centre and more

Mark Mitchell's fitness regime, Canadian billionaires, and more.

Victoria Young 5:00am

Opinion

Simon Robertson: The brewing Silicon Valley storm

An enormous amount of capital will vaporise during the epic tech battle.

Simon Robertson 5:00am

Technology

Why are the young so vulnerable to phishing scams? Blame fomo

Making quick, instinctive decisions gets frequent social-media users in trouble.

The Wall Street Journal 5:00am

Why are the young so vulnerable to phishing scams? Blame fomo

Sponsored

The new face of luxury Scotch: Harrison Ford, the Traitors castle and an E-Type Jag

Harrison Ford’s Glenmorangie campaign breaks all the rules.

Glenmorangie Whiskey

Sponsored

Mastering market swings

ETFs can be a "smart" way to build a long-term, diverse portfolio.

Smart

More Finance

Finance

FMA files criminal charges against David McEwen

New Zealand’s financial watchdog has filed criminal charges against former financial adviser David McEwen for allegedly failing to comply with a stop order, which prevented him from contacting potential investors.The Financial Markets Authority (FMA) had made a permanent stop ord...

Staff reporters 18 Mar 2025