Common sense may break out

The IRD proposed to use 20/20 vision of hindsight to challenge the tax return of migrants going back years!!!

Hon Peter Dunne Minister of Revenue media statement .............

It is proposed that from the 2011/12 year:

• Tax would be payable when a person receives a pension or lump sum, or transfers a lump sum to another scheme (rather than on an annual basis)
• Periodic pensions would continue to be taxed as they currently are
• A portion of any lump sum amount would be taxed depending on the length of time between when a person arrived in New Zealand and when they withdraw or transfer their lump sum.

Mr Dunne said the proposed rules also address certain transitional issues:

• People who withdrew or transferred a lump sum between 1 January 2000 and 31 March 2011 would be able to choose to use a simple "short-cut" option with a low effective tax rate, as long as they disclose this to Inland Revenue before 1 April 2014.
• People who declared income before 31 March 2012 on their foreign superannuation under the foreign investment fund (FIF) rules for the 2010/11 year would continue to apply the FIF rules. They would not be subject to the proposed new rules.