The government is consulting on getting rid of gift duty, Revenue Minister Peter Dunne announced this afternoon.The duty was imposed to prevent people getting around estate and other taxes.Mr Dunne said the duty should go if the concerns about effect
The government is consulting on getting rid of gift duty, Revenue Minister Peter Dunne announced this afternoon.
The duty was imposed to prevent people getting around estate and other taxes.
Mr Dunne said the duty should go if the concerns about effects on creditor protection and social assistance targeting can be addressed,
“Officials have been reviewing the gift duty rules for several months and a strong case has emerged for repealing the rules altogether,” Mr Dunne said.
"Very little revenue is being collected, but it is a significant cost to Inland Revenue and to the private sector in compliance costs,” he said.
“The alignment of the top personal tax rate with the trustee tax rate announced in Budget 2010 will significantly reduce the motivation to minimise tax obligations through gifting to trusts."
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