Green Tax SOP Protects Funds For Kids
Green Tax SOP Protects Funds For Kids From Violent Families
The Green Party will today be introducing a supplementary order paper on the Taxation (Beneficiary Income of Minors) Bill to protect money set aside for children exposed to domestic violence.
The Taxation Bill is designed to remove a long-term loophole which has allowed family income to be distributed to children to reduce tax payments. In the 1999 income year about 3,000 children under the age of six received beneficiary income exceeding $21 million.
The Green SOP, which has the support of the Government, will create an exception where a protection order is in place as a result of a violent family situation so that any money in trust for the benefit of children will continue to be taxed at the minor's tax rate.
"We support the intention of the bill to stop kids being used as a tax dodge but there are a small group of vulnerable children who are in a different situation and whose rights needed to be protected," said Green MP Rod Donald.
"These children have trusts set up in their name for genuine reasons such as where an abusive parent controls the family assets, and some assets are put aside for a child's future.
"In this case, it would be patently unfair for a child to have to pay the company tax rate because the income is clearly theirs.
"While the number of children involved is tiny, a much higher tax-rate would reduce their chances of a decent start in life. I'm therefore very pleased the Government has agreed to support my amendment," said Mr Donald.