New Threshold Simplifies Tax Obligations For Senior CitizensSenior Citizens
Senior Citizens groups do not now have to make withholding tax deductions when paying entertainers if the payments are under $40 , says Associate Minister of Revenue, Hon David Carter.
Inland Revenue recently reviewed payments made by senior citizens groups to entertainers following concerns raised by Age Concern in Christchurch.
Age Concern said most entertainers received payments of around $20 for their performances, and queried whether withholding tax needed to be deducted from these small amounts.
Mr Carter raised Age Concern's case with the Commissioner of Inland Revenue, who instigated a review into the issue.
"Inland Revenue has now come up with a solution for senior citizens clubs, and within one month of my advising them of a problem."
The $40 threshold which has been granted, will see withholding tax only being deducted on the amount exceeding the threshold.
Mr Carter has written to interested groups through Age Concern in Christchurch, and other people who signed a petition on the issue, to inform them of the threshold.
"Many elderly people were duped into signing a petition instigated by the Labour Party criticising withholding tax requirements for entertainers, when Labour had been informed by my office that Inland Revenue was working on a solution. The petition was also incorrectly drafted, and not admissible in Parliament's House of Representatives."
"Inland Revenue has responded to this concern within the older community in a very fair and reasonable fashion, and I think they deserve credit for their speed in addressing this issue."