Originally Posted by
Janda
Not true NLH. My tax returns were prepared by an expert who advised me to pay 10% tax in UK as opposed to paying the top rate tax in NZ. A small portion of my UK income was then subject to this higher rate. However, I saved over $1500 per year.
You wouldn't get away with that now. Say your RAF Pension was $40,000 and you paid that UK tax of 10% ie $4,000. You would have to declare to the NZ IRD that $40,000 income and also declare that you had already paid $4,000 tax in the UK. For simplicity, if the Pension fell into the bracket where the NZ tax rate is 30% your tax liability in NZ would be (40,000 x 30%) - 4,000 ie $8,000.
That's the purpose of the double taxation agreement.