Law & Regulation

High earners pay tax early to escape new 39% rate

Pattrick Smellie
Mon, 31 Jan 2022

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
Mon, 31 Jan 2022
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...

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Property FREE
Money Answers: how much mortgage can I actually afford?
Frances Cook | Sat, 25 Jun 2022

This week, readers ask how they should decide as a family what they can afford in terms of buying a house – and just because you can, should you?

Health
The eyes have it
The Economist | Sat, 25 Jun 2022

Short-sightedness used to be rare. Now it's growing across the globe. Tim Cross, The Economist's technology editor, investigates its rapid rise.

On the Money
On the Money: Don Braid, Fletcher, Steve Newman and more
Victoria Young | Sat, 25 Jun 2022

OTM this week: A bit of matchy-matchy for Don Braid, the reopening of Parliament's lawns, Eroad, Fletcher and more. 

Sponsored
Investments to sustain the momentum of building in NZ

Classic Capital has opened its Land & Build fund to qualified wholesale and eligible investors.

Sponsored
High water marks: Watercare raises the tide on sustainability

The No.1 barrier to decarbonisation for NZ organisations is accurate measurement, says Microsoft’s Accelerating the Journey to Net Zero report.