19 details to look out for in the capital gains tax proposal

The Taxpayers Union has published a list of 19 things to look for in the proposal due out at 11 am. They are:

  1. will the capital gains tax apply on death or just on sale of an asset;
  2. will the tax apply if capital is simply being recycled within the same asset class (selling a smaller farm to purchase a larger farm, for example)?
  3. will there will be a discounted or lower rate, like in Canada, Australia, the United Kingdom, or the United States?
  4. will the revenue be offset with tax cuts;
  5. if so, who will receive them;
  6. will revenue neutrality be maintained in the medium-to-long term as CGT revenue grows?
  7. will there be exemption exclusions for large properties (will lifestyle blocks be subject to the tax?);
  8. will there be a ‘maximum value’ for the family home;
  9. how much tax will be payable if there is an exemption exclusion?
  10. will asset owners be required to value their property and businesses;
  11. if so, will it be at their expense, or will the general taxpayer be required to pay;
  12. if the general taxpayer is required to pay, what will be the estimated cost of ‘V-Day’
  13. how much time will taxpayers have to obtain asset valuations;
  14. if valuations are not obtained, will other ‘default valuations’ be used?
  15. are there any sectoral exemptions (e.g. racing, fisheries);
  16. will Maori authorities pay capital gains tax, if so, at what rate;
  17. how are vehicles, boats, antiques etc. treated?
  18. at what rate are trusts taxed;
  19. will they be taxed on accrued or realised gains?

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