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Tax Facts - Gift Duty

The government abolished gift duty for dispositions of property made on or after 1 October 2011. This means that:

• Gift duty will not be payable for dispositions of property made on or after 1 October 2011

• Gift statements will not need to be filed for dispositions of property made on or after 1 October 2011

• However, gift duty and gift statements will remain due for dispositions of property made prior to 1 October 2011

For gift duty on any gifts made before 1 October 2011, the IRD's guide on the IRD website is helpful.

 

A gift is something given when:

• Nothing is received in return; or

• Something is received in return, but its value is less than the value of the property given.

If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values.

 

These items can all be gifts:

• Transfers of any items (for example, company shares or land).

• Any form of payment.

• Creation of a trust.

• A forgiveness or reduction of debt.

• Allowing a debt to remain outstanding so that it can't be collected by normal legal action.

For more information on gifting or gift duty please give us a call.

Contact Us

 

Phone: 03 337 0076

 

Address:

Level 1, 81 Cashmere Road
(above Zeroes Coffee)

Cashmere

Christchurch

New Zealand