High earners pay tax early to escape new 39% rate

High earners pay tax early to escape new 39% rate
The 11 cents in the dollar difference between the company and top personal tax rate seems to have spurred action. (Image: Getty)
Pattrick Smellie
Company owners looking to avoid the new 39% top tax rate are producing a one-off surge of tax payments to the Inland Revenue Department, according to a briefing paper from the tax agency.The Nov 5 briefing shows a 291% upward bounce in dividend income declared by companies in the year to March 31 2021 for 119,000 high income individuals.The figure may yet be higher as, at that date, some 40% of income tax returns had yet to be filed by people who earned more than $170,000 in the 2019 and 2020 tax years and more than $180,000 in the 2021 tax yea...

More Law & Regulation

Vector ‘on notice’ for unfair contract terms; complainant now facing higher costs
Property

Vector ‘on notice’ for unfair contract terms; complainant now facing higher costs

A developer’s Fair Trading win against Vector feels like a loss.

Garth Bray 01 Jul 2025
Can you be an influencer and keep your day job?
Law & Regulation

Rachael Judge: Can you be an influencer and keep your day job?

The more public your role, the more likely it is to reflect on your employer.

Rachael Judge 27 Jun 2025
$600m in tourist spend at risk from regulation: Mastercard
Finance

$600m in tourist spend at risk from regulation: Mastercard

When Europe cut interchange fees, foreign card decline rates soared.

Pattrick Smellie 27 Jun 2025
Public Trust makes claims of $900m against SolarZero
Law & Regulation

Public Trust makes claims of $900m against SolarZero

Public Trust has made unsecured claims against the company.

Ian Llewellyn 25 Jun 2025