31 Aug 2010

Income reporting options floated by IRD

11:46 am on 31 August 2010

Inland Revenue has put forward several options to stop wealthy people getting state assistance.

They include adding money from trusts to an individual's taxable income, along with fringe benefits and other sources of cash, before assessing whether they are entitled to state aid.

The Government in May blocked a loophole to stop tax losses on properties being used to make a person's income seem lower.

The new proposals are open to the public for comment.

Revenue Minister Peter Dunne says the proposals might overcome a serious problem, but the Government will await the public reaction before deciding whether to adopt them.

However, the Institute of Chartered Accountants says the proposals may be very expensive to administer.

Tax director Craig MacAlister thinks they are good in theory but could get bogged down in details.