2f3ded9f_l___Tax_Policy__Inland_Revenue__Area_affected
[Level of risk] Very low – IRD records show that 0.003% of people who have filed gift statements since 2001 have gone into bankruptcy. MED advises that the Official Assignee has recovered a total of $1.5 million from trusts in the past two years. Some of this may have been through insolvent gifting provisions. However, in the same period, an overall total of $500,000 was recovered from all entities using the insolvent transactions provisions under the Insolvency Act 2006 and “virtually none” of this has been related to book debts under gifting programmes. [Agency] Ministry of Economic Development (MED) None proposed. [Recommendation] The Law Commission is considering creditor protection with respect to trusts as part of their review and MED will contribute to that discussion. MED will monitor the impact of gift duty repeal on creditors going forward. [Area affected] 
Debt recovery by the Official Assignee
Gift duty repeal | Tax Policy, Inland Revenue
Area affected