New Zealand / Politics

Timetable for tax changes set out

12:43 pm on 16 March 2012

Revenue Minister Peter Dunne has laid out the likely timetable for tax changes including tightening up on the rules for tax deductions on personal assets used for business

Rules will be changed to make it harder for people to hide income, in the likes of trusts, for the purpose of claiming assistance such as Working for Families.

The changes were flagged in the 2011 Budget and will be contained in two tax bills - one in the middle of the year and one at the end.

The first change will be new rules to ensure tax deductions on assets like holiday homes, planes and yachts are accurate in terms of the amount of time they're used for business, rather than personal use.

These changes are likely to be contained in the mid-year legislation.

More work will also be done to ensure people declare their real income when claiming assistance such as Working for Families

Mr Dunne says there are people hiding income in the likes of trusts, which is unfair on other taxpayers, who have to foot the bill.