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    • Tax – Gift Duty

    Home  »  Tax facts  »  Tax - Gift Duty

    Gift Duty was abolished in New Zealand as from 1 October 2011.

    • There is no paperwork to be lodged with the IRD after that date.

    IRD website explains gift duties prior to 1 October 2011 well on their website: www.ird.govt.nz

    Gift Definition: Gift is something when given:

    • Nothing is received in return.
    • Something is received in return but with a lesser value than the original gift. The difference in value between the gift given and gift received is then the value of the gift.

    Examples of Gifts:

    • Transfers of any items (eg Company shares or land).
    • Creating a Trust.
    • Allowing a debt to remain outstanding.
    • A reduction or forgiveness of debt.
    • Any form of payment.

    When should I record a Deed of Gift?

    • For substantial gifts it is recommended that a Deed of Gift be recorded.
    • Your lawyer can assist you with this.

    Can a gift be set aside?

    • The Property Law Act 2007, Child Support Act 1991 and the Insolvency Act 2006 all contain clauses giving the Courts the power to set aside gifts.

    For more information please call us on 09 373 4544 or visit https://www.ird.govt.nz/duties/gift-duty

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