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Living tax-free in NZ

 
 
Bruce Simpson
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      01-09-2004
On Fri, 09 Jan 2004 22:11:45 +1300, Barry Phease <(E-Mail Removed)>
wrote:

>> Although there will be a "gift" button on the website, the
>> contribution of a gift will in no way entitled the giver to any
>> product, service or other benefit or entitlement -- hence it will be a
>> pure gift and tehrefore (according to the IRD themselves) non-taxable.

>
>The fact that you are spending money (hosting fees/ISP fees) to put
>information on the website would probably count against you. That could
>be seen as a service to your donors. (A bit like busking - which is
>taxable).


It looks as if I'll be getting the hosting for free and since I, like
millions of other Kiwis, use my ISP connection for a range of things,
I don't think they could hold that against me (although that doesn't
mean they wouldn't try).

>> Of course the prospect of filing a tax return in which I show no taxable
>> income -- but claim enough donations to charitable organisations that
>> *they* have to send me a cheque has a certain appeal to it too

>
>I don't think it works like that. I don't think you can claim more than
>you pay unless you are a business, and even then they don't send you
>money, you can only hold it against a future tax bill.


Yes, you're right -- the amount claimed in deductible donations can't
exceed your income or $630 -- whichever is the lower. That's not a
problem though because I still have my ChCh Press column that returns
not much more than that and on which I pay provisional tax at about
24% I believe. So -- not only will I get a rebate on the difference
between the lowest taxable rate (19.5%?) and the provisional amount
paid, but if I donate $640 of that money to charity I can also get a
rebate on 19.5% of that amount as well.

>> And what would *you* like to see on the Aardvark website? What would it
>> take to make Aardvark a regular feature on your bookmark list?

>
>Good question! I guess real information that is hard to find anywhere
>else. Perhaps statistics that are hard to find for future pointless
>usenet arguments (about crime rates, tax rates etc across different
>countries).


There *will* be a political section -- albeit that I'll probably host
that over at politics.co.nz


--
you can contact me via http://aardvark.co.nz/contact/
 
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Bruce Simpson
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      01-09-2004
On Fri, 09 Jan 2004 19:44:06 +1100, Jay <(E-Mail Removed)> wrote:

>Bruce Simpson wrote:
>
>> This won't be a donation or a payment -- it will be a gift, as
>> recently defined to me by the IRD who say it is anything of value
>> which is given unconditionally and not in return for any service,
>> product or other consideration.

>
>Haven't you heard of gift duty?


Yes I have. -- but it's a tax levied against the giver of the gift,
not the recipient. And it also doesn't apply unless the giver has
given over $27,000 in any financial year. No, I don't expect *anyone*
to gift even 0.1% of that amount so it shouldn't result in anyone
paying gift duty.

>You are not allowed to give money away in NZ.


Yes you are -- or are you suggesting that when Grandma sends little
Johnny a birthday card with a $20 note in it she's risking
prosectution by the IRD?

>You will pay tax.


No I won't -- did you pay tax on your Christmas presents??

>Also, deliberate attempts to evade tax will attract severe punishment.


That's true -- but since I will not be running a business and not
charging for any service, product or other consideration -- I won't be
evading tax.

>But I think you will deserve it, mainly because you have already declared
>an intention to defraud the public purse. And now we all have your IP
>address, and it doesn't take a genius to work out who you are.


Gosh, that's true -- but it obviously takes a lot more intelligence
than you've got.

>If you haven't already been bankrupted then I reckon it wont take long.


Do some research -- find out who I am and the background to my
situation.

--
you can contact me via http://aardvark.co.nz/contact/
 
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Craig Sutton
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Posts: n/a
 
      01-09-2004

"Bruce Simpson" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> After my recent run-in with the taxman, I have decided to try a new
> tack.
>
> I am about to spend a lot of time (the one resource I now have plenty
> of) in revamping my Aardvark website.
>
>

How about PornVark ?

with some lovelly ladies who will do anything to get people clicking that
gift button


 
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Lawrence D'Oliveiro
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Posts: n/a
 
      01-09-2004
In article <(E-Mail Removed)>,
Bruce Simpson <(E-Mail Removed)> wrote:

>2. They can accept that by doing this I won't need to draw an
>unemployment benefit and so the net result of allowing any gifts
>received to considered tax-free (as they should be) will result in a
>net positive outcome for the taxpayer. One only has to work out how
>much I'd receive by way of the dole versus how much would be lost by
>not taxing my gifts to see which is the best option for the taxpayer's
>pocket.


That makes sense ... which means they couldn't possibly allow it to work.
 
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Sue Bilstein
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Posts: n/a
 
      01-09-2004
"Bruce Simpson" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> After my recent run-in with the taxman, I have decided to try a new
> tack.
>

....
> What I will be doing however, is accepting "monetary gifts" through
> the site -- my hope being that people will come to the site and think
> to themselves "this guy's working hard and producing something I
> consider to be valuable so I'll gift him a little money."
>
> This won't be a donation or a payment -- it will be a gift, as
> recently defined to me by the IRD who say it is anything of value
> which is given unconditionally and not in return for any service,
> product or other consideration.
>


What about starting an online church? (Are ministers and churches
tax-exempt here?)


 
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K & S
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Posts: n/a
 
      01-09-2004
On Fri, 9 Jan 2004 22:21:35 +1300, "KS" <(E-Mail Removed)> wrote:

>> Why does he not get a job, like most of us..

>
>****, that's rich coming from you.
>
>"Mr ACC handout how shall I spend my new large payout ohh should it be a new
>video card ??"
>
>At least Bruce doesn't run around claiming he knows everything, unlike you,
>you stupid braindead child.
>



I do have a Job you know, and ACC Only paid me what I was entitled to..

Are you jealous or some thing as it does sound like that..






 
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K & S
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Posts: n/a
 
      01-09-2004
On Fri, 9 Jan 2004 22:21:35 +1300, "KS" <(E-Mail Removed)> wrote:

>> Why does he not get a job, like most of us..

>
>****, that's rich coming from you.
>
>"Mr ACC handout how shall I spend my new large payout ohh should it be a new
>video card ??"




That was in the Bank and saved up for before I even got any money frm ACC,
seems to me you just can't save..?




>At least Bruce doesn't run around claiming he knows everything, unlike you,
>you stupid braindead child.
>


 
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Bruce Simpson
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Posts: n/a
 
      01-09-2004
On Fri, 9 Jan 2004 22:12:03 +1300, "Dave Joll" <(E-Mail Removed)>
wrote:

>However it may count as income for tax purposes...
>Bruce, you'd better get something in writing from the
>IRD (and from someone fairly high up within it) if
>you don't want the buggers breathing down your neck.


Written opinions from the IRD are generally not worth the paper
they're written on and are, from what I've read, non-binding.

I would really like to see whether they have the best interests of
taxpayers in mind -- and this is one way to check that out. If they
are prepared to spend a small fortune (of taxpayer's money) to
prosecute me while I'm doing my best to *avoid* being a drain on the
public purse then I think it would say a lot -- not that their actions
haven't said a lot already.

Besides which -- what can they do? Send me a bill for $x,000 and
bankrupt me if I don't pay?

I already have a verbal assurance from the dept (time/date of the call
and the helpdesk respondent's name carefully noted in my diary) so I
think it's fair to say that I am acting in good faith on the basis of
information given to me by the IRD.

--
you can contact me via http://aardvark.co.nz/contact/
 
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Jason M
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Posts: n/a
 
      01-09-2004
On Fri, 09 Jan 2004 23:33:57 +1300, Bruce Simpson
<(E-Mail Removed)> wrote:

>On Fri, 9 Jan 2004 22:12:03 +1300, "Dave Joll" <(E-Mail Removed)>
>wrote:
>
>>However it may count as income for tax purposes...
>>Bruce, you'd better get something in writing from the
>>IRD (and from someone fairly high up within it) if
>>you don't want the buggers breathing down your neck.

>
>Written opinions from the IRD are generally not worth the paper
>they're written on and are, from what I've read, non-binding.
>
>I would really like to see whether they have the best interests of
>taxpayers in mind -- and this is one way to check that out. If they
>are prepared to spend a small fortune (of taxpayer's money) to
>prosecute me while I'm doing my best to *avoid* being a drain on the
>public purse then I think it would say a lot -- not that their actions
>haven't said a lot already.
>
>Besides which -- what can they do? Send me a bill for $x,000 and
>bankrupt me if I don't pay?


I know of a bankrupt guy who went to jail for months for just signing
a document while he thought he was working as an employee, so you need
to be very careful of that.

>I already have a verbal assurance from the dept (time/date of the call
>and the helpdesk respondent's name carefully noted in my diary) so I
>think it's fair to say that I am acting in good faith on the basis of
>information given to me by the IRD.


They will probably have recorded the call, and so should you have.

 
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LAR
Guest
Posts: n/a
 
      01-09-2004
Bruce Simpson wrote:

> After my recent run-in with the taxman, I have decided to try a new
> tack.
>
> I am about to spend a lot of time (the one resource I now have plenty
> of) in revamping my Aardvark website.
>
> As well as the existing daily commentary and Net-industry news
> aggregation, I'll be adding a raft of other news (general/current
> affairs, science, etc), some audio feeds, a significantly enhanced
> discussion/forums system, regular new feature articles and reviews,
> etc.
>
> All of this will be published completely free of charge and free of
> paid advertising.
>
> What I will be doing however, is accepting "monetary gifts" through
> the site -- my hope being that people will come to the site and think
> to themselves "this guy's working hard and producing something I
> consider to be valuable so I'll gift him a little money."
>
> This won't be a donation or a payment -- it will be a gift, as
> recently defined to me by the IRD who say it is anything of value
> which is given unconditionally and not in return for any service,
> product or other consideration.
>
> Although there will be a "gift" button on the website, the
> contribution of a gift will in no way entitled the giver to any
> product, service or other benefit or entitlement -- hence it will be a
> pure gift and tehrefore (according to the IRD themselves) non-taxable.
>
> Also, since I'm not able to be a company director or be self-employed
> for the next three years, this will not be a business venture --
> simply something to consume my otherwise spare time.
>
> Now the IRD/government has two options here:
>
> 1. They can dispute the "gift" status of money given to me through
> this website (even though it qualifies by their own definitions as a
> gift) and therefore spend even more taxpayer's money testing this in
> court -- an action I will defend using taxpayers' money via the legal
> aid system)
>
> or
>
> 2. They can accept that by doing this I won't need to draw an
> unemployment benefit and so the net result of allowing any gifts
> received to considered tax-free (as they should be) will result in a
> net positive outcome for the taxpayer. One only has to work out how
> much I'd receive by way of the dole versus how much would be lost by
> not taxing my gifts to see which is the best option for the taxpayer's
> pocket.
>
> I figure that if I can create a website that convinces just 2000-3000
> people to gift me just $10 a year then I can "survive" without paying
> tax and without burdening the taxpayer.
>
> Of course there's also the risk that, even if the site becomes wildly
> successful, in terms of traffic and its content, only a handful of
> people will choose to send me a gift and I won't be able to survive.
> However, I've got to do something with my energies and I'd rather do
> something positive that contributes to NZ than just waste away
> watching TV and spending other taxpayers' money by way of the dole.
>
> Of course the prospect of filing a tax return in which I show no
> taxable income -- but claim enough donations to charitable
> organisations that *they* have to send me a cheque has a certain
> appeal to it too
>
> What do you think?
>
> Am I wasting my time? Am I poking a tiger with a stick? Should I
> simply sit back and enjoy a three-year holiday at the taxpayers'
> expense instead?
>
> And what would *you* like to see on the Aardvark website? What would
> it take to make Aardvark a regular feature on your bookmark list?
>
> --
> you can contact me via http://aardvark.co.nz/contact/


A gift of free bandwidth would be great don't you think?
 
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