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...

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