New top tax rate left open to avoidance, tax department warns

New top tax rate left open to avoidance, tax department warns
Pattrick Smellie
The government is foregoing extra tax revenue of $1.5 billion by leaving the tax rate on trusts at 33 cents in the dollar while raising the top personal income tax rate to 39 cents in the dollar, the Inland Revenue Department has warned.Its regulatory impact statement on legislation introduced today to raise the top tax rate from April 1 next year also warns that revenue estimates from the move are made more difficult because the government is creating a six-cents-in-the-dollar difference between the trust and personal tax rates.Revenue Ministe...

More Policy

John Key, Helen Clark united in 'bed tax' support
Policy

John Key, Helen Clark united in 'bed tax' support

The former Prime Ministers are buying what Wayne Brown is selling.

Govt readies new $30m coastal shipping fund
Policy

Govt readies new $30m coastal shipping fund

The $30m was earmarked last June, but details have remained scarce.

Govt awards $71m for new advanced technology platform
Policy

Govt awards $71m for new advanced technology platform

Victoria University's Robinson Research will manage the platform.

Greg Hurrell 05 May 2025
Airports v airlines and the regional monopoly conundrum
Policy Analysis

Airports v airlines and the regional monopoly conundrum

Why is airport regulation being reviewed when all the fuss is about airfares? 

Pattrick Smellie 30 Apr 2025