New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
#106
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
I have read this post with great interest & have lived in many countries the last few years.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
#107
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
#108
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
I have read this post with great interest & have lived in many countries the last few years.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
#109
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
I have read this post with great interest & have lived in many countries the last few years.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
In NZ I always thought you had to declare all your income & assets in NZ (Shares, Insurance Proceeds, Inheritances, & compensation for injury) & then you had to declare the same for any of the above that you held or derived overseas including Pension Schemes. At least that is what I remember on filling out my annual income tax return.
When we lived in Spain we had to declare all of our world wide income & assets & was taxed accordingly.
So don't understand how pension funds are tax free. If you were told that do any of you have it in writing? Also do not understand how a UK advisor can decide the taxation rules that apply to New Zealand. It is up to New Zealand to implement their own tax laws.
I am not having a go at any of you but I fail to see it as posted here. If that was the case I should not have to pay tax on my meagre pension.
I have to pay tax on my Australian Age Pension & because I live in New Zealand the pension is paid at a reduced rate. When I lived in Cyprus it was paid at 100% & not taxed.
'You both left UK in April 2005 and started the Pension Transfers May 2010.
There was no tax to pay on transferring your pension to NZ then or now under current legislation .
The IRD have put a discussion document out only re FIF taxation regime where funds in a foreign Superannuation Scheme worth over $50,000 pounds can be assessed for a 5% capital gains tax each year.
This applies whether you transfer or not so the sooner one transfers the lesser the liability.
The longer you leave funds there the bigger the liability.
Britannia will be sending out a letter shortly after taking taxation advice so we should wait until then.
It’s only a discussion document that’s been circulated and it’s not law yet.'
Have no idea what the veracity is of what he has written but suffice to say he told us at the time it was all tax free. Was not/am not impressed with the performance of our QROPs co and they got a whole heap of cash for doing pretty much nought. Taken to the cleaners yet again. NZ appears to be chocca full of knobs.
Last edited by Genesis; Aug 2nd 2012 at 4:00 am.
#110
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Yes I do..here is what my NZ QROPs representative has written to me.
'You both left UK in April 2005 and started the Pension Transfers May 2010.
There was no tax to pay on transferring your pension to NZ then or now under current legislation .
The IRD have put a discussion document out only re FIF taxation regime where funds in a foreign Superannuation Scheme worth over $50,000 pounds can be assessed for a 5% capital gains tax each year.
This applies whether you transfer or not so the sooner one transfers the lesser the liability.
The longer you leave funds there the bigger the liability.
Britannia will be sending out a letter shortly after taking taxation advice so we should wait until then.
It’s only a discussion document that’s been circulated and it’s not law yet.'
Have no idea what the veracity is of what he has written but suffice to say he told us at the time it was all tax free. Was not/am not impressed with the performance of our QROPs co and they got a whole heap of cash for doing pretty much nought. Taken to the cleaners yet again. NZ appears to be chocca full of knobs.
'You both left UK in April 2005 and started the Pension Transfers May 2010.
There was no tax to pay on transferring your pension to NZ then or now under current legislation .
The IRD have put a discussion document out only re FIF taxation regime where funds in a foreign Superannuation Scheme worth over $50,000 pounds can be assessed for a 5% capital gains tax each year.
This applies whether you transfer or not so the sooner one transfers the lesser the liability.
The longer you leave funds there the bigger the liability.
Britannia will be sending out a letter shortly after taking taxation advice so we should wait until then.
It’s only a discussion document that’s been circulated and it’s not law yet.'
Have no idea what the veracity is of what he has written but suffice to say he told us at the time it was all tax free. Was not/am not impressed with the performance of our QROPs co and they got a whole heap of cash for doing pretty much nought. Taken to the cleaners yet again. NZ appears to be chocca full of knobs.
Looking at the Australia website apparantly since 2004 they had a meeting in Washington DC between various countries & now exchange information, I read it recently & will try to find it & post the link.
I hear where you are coming from & despite what your NZ representative told you I am afraid if IRD introduce it noone has a leg to stand on.
You can protest all you like but I was always told "You can't fight City Hall"
I was deceived by self funded superannuation scheme in Australia several years ago & the only person that made any money out of it was the Investment Advisor of my bank. I lost plenty through their bungling & mismanagement & had the audacity to charge me extortionate fee on top of my losses.
But all countries are requesting information on all income & assets these days.
#111
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
A previous post mentioned deriving rent from a property in the UK & not declaring it.
If you read the following you will see you are obliged to declared overseas assets that are income producing. Afraid failure to do so will only make the situation worse & they will add fines & interest to undeclared income etc once they discover it.
http://www.ird.govt.nz/yoursituation...reign-inc.html
If you read the following you will see you are obliged to declared overseas assets that are income producing. Afraid failure to do so will only make the situation worse & they will add fines & interest to undeclared income etc once they discover it.
http://www.ird.govt.nz/yoursituation...reign-inc.html
#112
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Not only NZ I am afraid all countries now are looking at ways they can raise revenue especially on anything that is not attracting tax presently.
Looking at the Australia website apparantly since 2004 they had a meeting in Washington DC between various countries & now exchange information, I read it recently & will try to find it & post the link.
I hear where you are coming from & despite what your NZ representative told you I am afraid if IRD introduce it noone has a leg to stand on.
You can protest all you like but I was always told "You can't fight City Hall"
I was deceived by self funded superannuation scheme in Australia several years ago & the only person that made any money out of it was the Investment Advisor of my bank. I lost plenty through their bungling & mismanagement & had the audacity to charge me extortionate fee on top of my losses.
But all countries are requesting information on all income & assets these days.
Looking at the Australia website apparantly since 2004 they had a meeting in Washington DC between various countries & now exchange information, I read it recently & will try to find it & post the link.
I hear where you are coming from & despite what your NZ representative told you I am afraid if IRD introduce it noone has a leg to stand on.
You can protest all you like but I was always told "You can't fight City Hall"
I was deceived by self funded superannuation scheme in Australia several years ago & the only person that made any money out of it was the Investment Advisor of my bank. I lost plenty through their bungling & mismanagement & had the audacity to charge me extortionate fee on top of my losses.
But all countries are requesting information on all income & assets these days.
#113
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Personally I do not understand why people are getting so upset regard the government looking to collect tax from someone's income. Ok, it currently tax free, but the government must look at additional income streams.
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?
#114
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
A previous post mentioned deriving rent from a property in the UK & not declaring it.
If you read the following you will see you are obliged to declared overseas assets that are income producing. Afraid failure to do so will only make the situation worse & they will add fines & interest to undeclared income etc once they discover it.
http://www.ird.govt.nz/yoursituation...reign-inc.html
If you read the following you will see you are obliged to declared overseas assets that are income producing. Afraid failure to do so will only make the situation worse & they will add fines & interest to undeclared income etc once they discover it.
http://www.ird.govt.nz/yoursituation...reign-inc.html
If they get away with this they are REALLY going to piss off a load of people and give NZ a bad name IMO.
Last edited by Genesis; Aug 2nd 2012 at 4:42 am.
#115
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Personally I do not understand why people are getting so upset regard the government looking to collect tax from someone's income. Ok, it currently tax free, but the government must look at additional income streams.
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?
#116
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Trying to get away with what is due is not wise, especially as an immigrant from a moral stand point. Personally I think immigrants (like me) have a greater pressure on them than those born here to pay 100% what tax is due. Tax avoidance by legal means is fair game. Tax evasion leaves you open to expulsion one would assume. I will pay all my NZ taxes and many give me sideways glances when I say I declare it all and if in doubt I call the tax man. Honesty is the best policy. However when the IRD try to change what was agreEd when I took a transfer on is well out of order and I do not think they should be able to change something and then tax in a retro style. Bit like the police saying they have changed the speed to 40k's, told no one then issue a load of tickets..not really fair eh? If you don't know all the facts how can you make a good and fair and rational choice?
If they get away with this they are REALLY going to piss off a load of people and give NZ a bad name IMO.
If they get away with this they are REALLY going to piss off a load of people and give NZ a bad name IMO.
http://www.ato.gov.au/individuals/co...01/002&st=&cy=
It's pretty lengthy, can put some to sleep but essentially think it says that overseas private pensions are subject to tax.
How do you think I feel NZ will let Australia pay it's old folk the full pension, & then NZ taxes the pension. Australia does not tax it's pensioners.
Guess all of us in NZ with some money have to keep those without money with an income & of course pay our politicians!
#117
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
[QUOTE=Catchafire;10205979
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?[/QUOTE]
Really that's news to me & where do you get your facts?
Add the income tax you pay plus the GST added to every cent you spend plus the GST on the interest you earn
Then tell me what the TRUE % is
I think it is disgusting that healthy food is taxed
I think it is even more disgusting that everything else is taxed
Power Bills
Water
Insurance
Rates
When so many people can barely afford these things
Tax, it's a fact of life, we pay less in NZ than other countries and why should we not contribute to society?[/QUOTE]
Really that's news to me & where do you get your facts?
Add the income tax you pay plus the GST added to every cent you spend plus the GST on the interest you earn
Then tell me what the TRUE % is
I think it is disgusting that healthy food is taxed
I think it is even more disgusting that everything else is taxed
Power Bills
Water
Insurance
Rates
When so many people can barely afford these things
#118
Forum Regular
Joined: Mar 2008
Location: Hawkes Bay
Posts: 185
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Forgive me if you have posted this but on looking through the IRD website came across the following I thought I would share with you.
"Pension funds in the United Kingdom and the FIF rules
On 6 April 2006, the United Kingdom introduced the Qualifying Recognised Overseas Pension Scheme (QROPS). This scheme allows the transfer of UK pension funds to overseas providers that meet certain requirements.
The scheme might have an impact on New Zealand tax residents-significantly widening the tax implications if the underlying scheme rules allow a transfer of a pension to a QROPS.
The New Zealand foreign investment fund (FIF) rules explicitly cover rights to benefit from foreign superannuation schemes as a beneficiary or member. The FIF rules apply if the foreign superannuation fund is not exempt under the new resident's accrued superannuation entitlement exemption (section EX42 of the Income Tax Act 2007) or the non-resident's pension or annuity exemption (section EX43).
It's Inland Revenue's view that from 6 April 2006, the exemption from the FIF rules can't apply to resident investors to whom the de minimis doesn't apply; who aren't transitional residents and who have a beneficial interest in a UK pension scheme which will allow the transfer into a QROPS.1 All such investors have been required to account for income under the FIF regime since 6 April 2006, or since the 2006 - 07 income year.2
However, this won't apply if the individual scheme rules don't allow a transfer; impose significant "penalties" for transferring interests out of the UK scheme; or if there is a substantial decrease in the present value of any benefits on transfer to a QROPS.
In these scenarios, the beneficial interest in the UK pension scheme is exempt from the FIF rules. While there'll be no taxation before a distribution is made, the tax consequences of any potential transfer or subsequent pension payment will depend on the underlying nature of the pension scheme.
1 The exception would be if the fund could be transferred into a QROPS but only at a cost of a substantial decrease in the present value of the benefits, such as if the UK pension provider allowed the transfer but only at a substantial cost.
2 The former Grey List exemption, which applied until 31 March 2007, did not apply to an entitlement to benefit from a foreign superannuation scheme. These investments were always caught by the FIF rules."
"Pension funds in the United Kingdom and the FIF rules
On 6 April 2006, the United Kingdom introduced the Qualifying Recognised Overseas Pension Scheme (QROPS). This scheme allows the transfer of UK pension funds to overseas providers that meet certain requirements.
The scheme might have an impact on New Zealand tax residents-significantly widening the tax implications if the underlying scheme rules allow a transfer of a pension to a QROPS.
The New Zealand foreign investment fund (FIF) rules explicitly cover rights to benefit from foreign superannuation schemes as a beneficiary or member. The FIF rules apply if the foreign superannuation fund is not exempt under the new resident's accrued superannuation entitlement exemption (section EX42 of the Income Tax Act 2007) or the non-resident's pension or annuity exemption (section EX43).
It's Inland Revenue's view that from 6 April 2006, the exemption from the FIF rules can't apply to resident investors to whom the de minimis doesn't apply; who aren't transitional residents and who have a beneficial interest in a UK pension scheme which will allow the transfer into a QROPS.1 All such investors have been required to account for income under the FIF regime since 6 April 2006, or since the 2006 - 07 income year.2
However, this won't apply if the individual scheme rules don't allow a transfer; impose significant "penalties" for transferring interests out of the UK scheme; or if there is a substantial decrease in the present value of any benefits on transfer to a QROPS.
In these scenarios, the beneficial interest in the UK pension scheme is exempt from the FIF rules. While there'll be no taxation before a distribution is made, the tax consequences of any potential transfer or subsequent pension payment will depend on the underlying nature of the pension scheme.
1 The exception would be if the fund could be transferred into a QROPS but only at a cost of a substantial decrease in the present value of the benefits, such as if the UK pension provider allowed the transfer but only at a substantial cost.
2 The former Grey List exemption, which applied until 31 March 2007, did not apply to an entitlement to benefit from a foreign superannuation scheme. These investments were always caught by the FIF rules."
#119
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Really that's news to me & where do you get your facts?
Add the income tax you pay plus the GST added to every cent you spend plus the GST on the interest you earn
Then tell me what the TRUE % is
I think it is disgusting that healthy food is taxed
I think it is even more disgusting that everything else is taxed
Power Bills
Water
Insurance
Rates
When so many people can barely afford these things
Add the income tax you pay plus the GST added to every cent you spend plus the GST on the interest you earn
Then tell me what the TRUE % is
I think it is disgusting that healthy food is taxed
I think it is even more disgusting that everything else is taxed
Power Bills
Water
Insurance
Rates
When so many people can barely afford these things
A large part of me wants to be somewhere else now but my needs are bottom of the pile and quite rightly so, as I dragged 'em all here in the 1st place. Some of what I say is a bit tongue in cheek but I do think NZ is very poorly run and poorly administrated place.
#120
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
The Internet is always a good place to start.
http://en.wikipedia.org/wiki/List_of...s_by_tax_rates
Carry on.
http://en.wikipedia.org/wiki/List_of...s_by_tax_rates
Carry on.