15 April 2003 Media Statement

Tax policy paper on asset transfers released

The government is inviting submissions on a tax policy paper released today for public discussion.

The paper, issued by tax policy officials, makes suggestions for clarifying the tax treatment of non-monetary distributions by companies and trusts, gifts of assets by individuals, and the various asset transfers that occur when someone dies.

“The government welcomes comments on the changes suggested in the paper,” Revenue Minister Michael Cullen said. “Although the suggested changes are not government policy at this stage, it is important that we know what interested parties think about them.

“There have been repeated calls in recent years to clarify tax law in this area, particularly in relation to the tax treatment of assets on the death of a taxpayer and their subsequent distribution to beneficiaries.

“This is an opportunity to remove doubt and develop a standard approach in an area where the tax law is neither clear nor uniform,” Dr Cullen said.

The paper, “Tax implications of certain asset transfers”,is available at http://www.taxpolicy.ird.govt.nz and http://www.treasury.govt.nz/tax/ The closing date for submissions is 13 June.

ENDS

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