05-06-2022, 03:17 PM
Surprising - no,  not even slightly.
https://www.stuff.co.nz/business/1288147...e-about-it
"Since the introduction of a new top personal tax rate, Inland Revenue has recorded a boom in the number of lower-tax entities created by high earners, which could be used to reduce tax bills.
The department (IR) warns efforts to dodge the new 39% tax by diverting income through companies (where they can be taxed at a maximum of 28%) and trusts (which can be taxed at a maximum of 33%) is likely to contribute to a $2.89 billion fall in revenues from high earners in the 2022 tax year.
The department is likely to re-open consultation on law changes to cut off methods of using companies to dodge tax later this year, after submissions raised issues during an initial consultation that closed in late-April, and moves are intended to be taken to crack down on trusts next year.
IR spokesperson Tony Morris says staff are not waiting on these changes, and if behaviour indicates someone has tried to avoid the top personal tax rate by diverting income to lower-tax entities they would be contacted and face substantial financial penalties."
https://www.stuff.co.nz/business/1288147...e-about-it
"Since the introduction of a new top personal tax rate, Inland Revenue has recorded a boom in the number of lower-tax entities created by high earners, which could be used to reduce tax bills.
The department (IR) warns efforts to dodge the new 39% tax by diverting income through companies (where they can be taxed at a maximum of 28%) and trusts (which can be taxed at a maximum of 33%) is likely to contribute to a $2.89 billion fall in revenues from high earners in the 2022 tax year.
The department is likely to re-open consultation on law changes to cut off methods of using companies to dodge tax later this year, after submissions raised issues during an initial consultation that closed in late-April, and moves are intended to be taken to crack down on trusts next year.
IR spokesperson Tony Morris says staff are not waiting on these changes, and if behaviour indicates someone has tried to avoid the top personal tax rate by diverting income to lower-tax entities they would be contacted and face substantial financial penalties."
in order to be old & wise, you must first be young & stupid. (I'm still working on that.)