New Zealand Gift Duty Abolished
August 18, 2011 New Zealand Taxation
Parliament has passed a new Bill, which aims to make the New Zealand tax system more efficient by abolishing gift duties.
New Zealanders are set to save a cumulative NZD 70 million a year in the future on complaince costs, following the passage of a new Bill though Parliament. The new Bill abolishes gift duties from the New Zealand tax system, with the change scheduled to take effect on October 1st 2011.
The Taxation (Tax Administration and Remedial Matters) Bill was originally introduced to Parliament in November 2010, and passed by Parliament on August 17th.
Commenting on the passing of the Bill the Revenue Minister Peter Dunne that the change is “… well past its due date”, and that gift duties were a “…relic of the estate duty era, long since passed, and it has been overtaken by other developments rendering it obsolete.”
Alongside the abolishment of gift duties, the new Bill also contained amendments to the national tax dispute process, and the introduction of rollover depreciation for Canterbury businesses. Several measures were also introduced which will facilitate the sharing of information between Inland Revenue and other government agencies.
Photo by tkw954