Submissions Wanted on Income Splitting
Inland Revenue is inviting submissions on a proposal by United Future on how to administer a potential Income Splitting system. Income Splitting means that a couple (only parents under the proposal) is treated as a tax unit rather than two individuals, and each parent is taxed on half of their combined income.
Father & Child Trust has generally supported Income Splitting, as the present system disadvantages families where one parent earns significantly more than the other often by several thousand dollars a year.
IRD Discussion Document
Submissions can be made to:
Income splitting tax credit
C/- Deputy Commissioner
Policy Advice Division
Inland Revenue Department
P O Box 2198
Wellington 6140
