I believe that New Zealand has the largest number of family trusts per capita in the world. This is all to avoid paying tax not just to look after the family. If we are not careful this country could end up like Greece and Ireland where tax income does not cover the outgoing of running a country.
I was pleased to hear that IRD won their case in the Courts today against the two Christchurch surgeons who artificially paid themselves low salaries while putting the rest into family trusts all in order to avoid paying tax. Now I don't have a great liking for the IRD, not out of principle but because I have had dealings with some very arrogant officers of the department. There is an unfortunate culture in that organisation that needs changing. Nevertheless they are charged with gathering a fair and equitable amount of tax from everyone in order to help run the country and I have no sympathy for anyone who deliberately tries to circumvent that.
Do you trust your surgeon? When going under the knife we put our lives in their hands. I can't trust someone like the one interviewed on radio today who disingenuously said when asked what he does with the trust money in relation to his holiday home "I don't personally own that holiday home, I'm just fortunate in being able to use it". I hope I never have to depend on him.
8 comments:
So you will be voting labour ...?
I don't understand what voting labour has to do with it (although I always do so). The tax loopholes in this country need to be changed.
Capital gains tax ,,,,
As far as I know this doesn't relate to family trusts.
ok.
word verification... redled
I earned $1000 from gigs last year and had to pay $360 at tax time - who is the sucker?
That means that each gig, rather than being worth $100, was worth just over $60.
Maybe I need a family trust?
"Maybe I need a family trust?"
At your age more likely a truss.
RBB - You are one of the few honest ones who declares his earnings from extra work. A lot don't. Maybe you now understnad why. Not that I can advocate this behaviour ethically to my students being a Commerce teacher, but my students always see the world as being hypocritical when the big corporations and other newsworthy cases are deliberate tax avoiders.
Not much fair about that. And I did alos have a short job stint at IRD. I left after a few months because of the corporate culture. It was bad in those days. Not sure if it is any better now.
Post a Comment