Accountants, Accounting, Tax,
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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.
Phone: 03 337 0076
Level 1, 81 Cashmere Road
(above Zeroes Coffee)