TAXN 201 – Introduction to Taxation (Week 1 Overview)

30 Question-and-Answer flashcards covering administrative details, key concepts, tax rates, equity principles, demographic challenges, and other foundational material from Week 1 of TAXN 201.

What is the course code and title of this class?

TAXN 201 – Introduction to Taxation

When and how long is the mid-term test, and what percentage of the final grade is it worth?

Wednesday 13 August (Week 6) at 4 pm, 75 minutes online, worth 20% of the final grade.

When is the individual written assignment due and what percentage does it contribute?

Due at 12 noon on Wednesday 3 September (Week 7); it is worth 20% of the final grade.

What is the weighting and delivery method of the final exam?

60 % of the final grade; face-to-face in the exam period.

According to the Oxford English Dictionary, what is a “tax”?

A compulsory contribution to support government, levied on persons, property, income, commodities or transactions at fixed rates.

List the three main purposes of a tax system mentioned in the lecture.

1) Revenue raising, 2) Redistribution, 3) Influencing behaviour (policy).

Which tax provides the largest share of New Zealand’s total tax revenue?

Individual income tax.

What are New Zealand’s flat rates for GST and company tax?

GST 15 %; company tax 28 %.

Name two taxes that New Zealand does NOT currently impose.

A comprehensive capital gains tax and a land tax (also no estate duty).

What are the new personal income tax thresholds from 31 July 2024 for the 10.5 % and 17.5 % bands?

10.5 % on $0–$15,600; 17.5 % on $15,601–$53,500.

Which four principles make up Adam Smith’s Canons of Taxation?

Equity, Efficiency, Certainty, and Convenience.

Provide two examples of indirect taxes.

Goods and Services Tax (GST) and customs duties.

Explain the difference between horizontal equity and vertical equity.

Horizontal equity treats people in similar circumstances alike; vertical equity treats people in different circumstances differently, often through progressive or regressive rates.

Name two of the Tax Working Group 2018/9 principles besides efficiency and equity.

Any two of: revenue integrity; fiscal adequacy; compliance & administration cost; coherence.

What percentage of Core Crown expenditure in 2024/5 is allocated to social security & welfare?

Approximately 34 %.

In 2024/5, what share of total government revenue is expected from GST?

About 25 % (24.7 %).

Where can students access the course outline, lecture slides, and their grades?

On Nuku, the course’s online learning platform.

Identify one major demographic challenge highlighted for New Zealand’s tax system.

An ageing population that increases the dependency ratio and pressures the sustainability of NZ Superannuation.

Which age group’s share of the population is projected to rise from 12 % in 2001 to 25 % by 2051?

People aged 65 and over.

What is the office location of the Course Coordinator, Andrew Smith?

Level 6, Room 607, Rutherford House.

When are Leslie Brown’s office hours?

The hour before and the hour after the Thursday lecture.

Who interacts with Inland Revenue in a direct tax versus an indirect tax?

Direct tax – the person intended to be taxed; Indirect tax – the collector (e.g., retailer) remits the tax.

What is the top marginal personal income tax rate in Australia for incomes above A$180,000?

45 %.

What is the current standard VAT rate in the United Kingdom?

20 % on most items.

Which two OECD countries have the lowest statutory corporate tax rates listed, and what are those rates?

Switzerland at 8.5 % and Ireland at 12.5 %.

Why do most New Zealanders not need to file an annual income tax return?

Because income tax is generally withheld at source through PAYE and similar systems that meet their liability.

What textbook is required reading for Week 1?

“New Zealand Taxation 2025: Principles, Cases and Questions.”

How are personal income tax rates in New Zealand expressed with respect to the ACC Earner’s Levy?

Rates are quoted as inclusive of tax but exclude the separate ACC Earner’s Levy.

What proportion of total personal income tax is paid by individuals earning over $150,001 according to Treasury data?

Approximately 24 %.

What does “revenue integrity” mean in tax policy discussions?

Ensuring the system actually raises the revenue intended by preventing avoidance and evasion.