The Government has chosen to delay the phasing out of the interest limitation rule for residential property investors, as outlined in the coalition agreement between National and Act parties.

The Hon Nicola Willis, Minister of Finance, has recently unveiled proposed amendments to tax legislation aimed at rectifying the over-taxation of low-earning trusts.

In April 2021 the top marginal tax rate was lifted from 33% to 39% for individuals with taxable income over $180,000. More recently the Government has announced that the tax rate for trusts will also go up to 39% from April 2024, and both Labour and National plan to go ahead with this change. This 39% tax rate will apply to all taxable income of the trust.

A standard data policing check completed by Inland Revenue is to review taxpayer GST filing patterns to identify taxpayers that are GST registered, but perhaps shouldn’t be.

The Budget 2023 announced a key change increasing the trustee tax rate from 33% to 39% from the 2024/2025 (generally 1 April 2024). This change is aimed at improving the integrity of the tax system by aligning the trustee tax rate in line with the top personal bracket of 39% which was introduced from 1 April 2021.
 

In the shadow of Cyclone Gabrielle, this year's budget focuses on cost of living and cyclone and flooding recovery, with the sights being shifted and narrowed down on skills, science and infrastructure to help grow the economy and make it more productive and secure.

Calculating Fringe Benefit Tax (FBT) on motor vehicles can be complex, due to the various permutations that can exist depending on the use of the vehicle, its type and the approach adopted by the employer. As a result, it is very common for businesses to get the calculation wrong.

On 31 March 2023, Inland Revenue released a draft interpretation statement (PUB00417) addressing the deductibility of land holding costs - namely, interest, rates and insurance - and the relevance of whether the land is taxed on disposal. How will this affect you?