Lies, damned lies and taxation: the trust rate change

Revenue minister David Parker launching the high wealth tax report last month. (Image: NZME)

Tue, 30 May 2023

Almost no one cares if wealthy people have to pay more tax, unless they’re wealthy themselves.So, there is no political downside in the budget announcement raising the tax rate to 39% on income earned through trusts.In a political environment primed by the release of Inland Revenue Department (IRD) analysis of high earners’ effective tax rates, the trust tax rate increase was, quite literally, the least that revenue minister David Parker could do to advance his desire to see tax levied more fairly.In the context of a total forecast...

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