Taxation Insights Quiz

A thoughtful person surrounded by tax-related documents and charts, pondering different taxation methods and their implications for dividends, capital gains, company taxes, and consumption.

Taxation Insights Quiz

Discover your stance on important taxation issues with our engaging quiz! Test your knowledge and opinions on how dividends, capital gains, company tax rates, and more should be handled in today's economy.

Evaluate various tax strategies
Understand the implications of different taxation methods
Enhance your knowledge on economic policies

7 Questions2 MinutesCreated by AnalyzingTax56

Q1. How should we tax dividends in hands of individuals?

Taxed at progressive rates, Refundable franking credits

Taxed at progressive rates, Non-refundable franking credits

Taxed at progressive rates, No franking credits, A deduction for dividends

Taxed at flat rate No franking credits, Only tax gains above the risk-free rate of return,

Q2. How should we tax capital gains (shares, invest. property)?

Capital gains not taxed*

Taxed at single flat rate

Taxed at one of a few flat rates, Flat rate depends on asset type and income level, Deduction for capital gains

Taxed at progressive marginal rate (with other income), Discount applies to income

Q3. What should company tax rate be?

Low compared to other countries (19%), Most individuals (~80%) have a higher rate

Low compared to other countries (22%), Same as individuals (flat rate on ordinary income)

High compared to other countries (28%), Some individuals (~33%) have a higher rate

High compared to other countries (30%), Concessional rate for small businesses (27.5%) Most individuals (~60%) have a higher rate

Q4. How progressive should personal income tax be?

No tax-free threshold and flat (with surtaxes on labour income)

No tax-free threshold and slightly progressive

Tax free threshold and moderately progressive

Tax free threshold and highly progressive

Q5. How should we treat investment losses?

Rental losses can only be used against other rent, Trading (self-employment) losses can offset any income, Carried forward indefinitely

Rental losses can only be used against other rent, All other losses can offset any income

Losses can be used to offset any other income, Carried forward indefinitely

Q6. How should we tax super?

State and private pensions. Private pension contributions are tax-free up to certain limits. Tax if savings in pension levels go above a certain threshold

Three types of pension funds The employer contribution tax rate depends on the region

No compulsory retirement savings. Optional KiwiSaver. Employee contribution taxed at employee’s MTR

Concessional - 15 per cent in, 15 per cent during and 0 per cent out Individuals>$250k – 30 per cent in, 15 per cent during 0 per cent out Non concessional – 0 per cent in, 15 per cent during 0 per cent out

Q7. How should we tax consumption?

High rate, lower rates for certain goods

High rate, few carve outs

Average rate, few carve outs

Low rate, many carve outs

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