Gift Duty Will be Abolished
November 1, 2010 New Zealand Taxation
The Government has confirmed that it will continue with its intention of abolishing gift duties in New Zeland, as promised earlier in the year.
On November 1st it was revealed by Peter Dunne, Revenue Minister of New Zealand, that gift duties will no longer be applicable in New Zealand, as of October 1st 2011.
According to Peter Dunne, various government departments have worked throughout the year to asses concerns surrounding the abolition of gift duties, and to appraise the move’s viability. Subsequently it was agreed that gift duties are generating an approximate NZD 70 million annually in compliance costs for the national private sector, while not raising any significant revenues for the Government. The Minister went on to say that the Government’s “work has revealed that the protection that gift duty offers in the areas of income tax, creditors and social assistance has only ever been incidental and very limited.”
After gift duty is abolished the Government will monitor the subsequent effect on the economy and tax system, to ensure there are no unintended effects or unexpectedly arising oversights. According to Peter Dunne there are currently adequate existing legislation which will provide appropriate levels of protection to all the risks associated with repealing gift duty.
The necessary legislation for abolishing gift duty will be introduced in November 2010.
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