With the Election now behind us and despite the uncertainty of the European debt situation ahead our thoughts are turning to holidays and all the tasks we want to complete in the lead up to Christmas. The prospect of barbeques, baches and boats enjoyed by family and friends is far more appealing to think about…Details
The 2011 year has been another year of significant tax changes; here is a summary of the key changes we have seen:
- A fall in the personal tax rates where the top effective personal tax rate has fallen from 35.5% to a top rate of 33%, which now equals the Trustee tax rate.
- The abolition of Gift Duty, which has brought with it a whole series of other quite significant issues to consider before gifting away large sums of money including:
- whether eligibility for the residential care subsidy can be retained
- whether the donor is solvent at the time of the gift.
- The company tax rate has fallen from 30% to 28% though dividends from companies must continue to have tax credits attached to 33% – meaning 5% withholding tax has to be deducted by the paying company.
That time of the year is upon us where many businesses host Christmas parties for clients and staff or provide gifts to clients and staff. With this in mind we thought it timely to remind readers of the tax implications associated with Christmas parties and gifts. The first rule is that for any expenditure to…Details