income splitting tagged posts
March 23, 2011 New Zealand Taxation
Peter Dunne’s income splitting proposal has hit a new roadblock after it failed to win the approval of the New Zealand Finance and Expenditure Committee.
The New Zealand Finance and Expenditure Committee has evaluated the income sharing tax-bill brought forward by the Revenue Minister Peter Dunne, saying that the idea has merit but would be too costly to implement and contains several oversights.
If enacted, the Taxation (Income-sharing Tax Credit) Bill would allow families with dependent children to split the parent’s incomes evenly for tax assessment purposes. Any tax benefits arising after application of the new rules would be given to the taxpayers in the form of an end of year tax credit...Read More
August 17, 2010 New Zealand Taxation
Over 310 000 New Zealand families could soon experience significant tax reliefs, if new legislations are passed allowing income sharing for the purpose of tax calculation.
Couples with children could be given the option of working fewer or more flexible hours, if a new legislation passes through Parliament. On the 16th of August the Taxation (Income-sharing Tax Credit) Bill was tabled in Parliament. The bill proposes that a couple with dependent children be able to choose to be taxed on an equal share of their combined incomes, and receive an end of year tax credit on any tax benefits calculated...Read More
December 11, 2009 New Zealand Taxation
An issues paper was released on December 11th with a proposition to allow families with children to split their incomes, for tax purposes.
The issues paper examines the merits of introducing an income splitting system, whereby a family is regarded as one taxable unit, for tax purposes. Under the proposal, a family that is primarily responsible for the day-to-day care of dependent children under 18 will be issued tax credits. The issue paper suggests that the family’s total tax liability should be calculated on an equal split of its cumulative income, not individual earnings, and that tax credits should be issued equal to the difference between the figures.
Explaining the proposal, Peter Dunne, New Zealand Minister of Revenue, said “Because income taxes are progressive, with high incomes at...Read More