On taxes paid while serving in Viet Nam

 Read the attached full report by Peter Cooke, on whether or not veterans paid tax while serving in Viet Nam. The report shows that, while tax was indeed paid, a lump sum non-taxable payment was made to each service person on their return to NZ, but probably not understood to be the tax offset that it was. Most seemed to think of it as 'deferred pay'

'The decision to compensate personnel for paying tax was “primarily a political matter and one for Government to decide”. The method chosen, tax-free Deferred Pay issued in a lump sum after return to NZ, was, however, inadequately publicized. Despite being only one of a number of frustrations, this has contributed to Vietnam veterans harbouring a feeling that their service and sacrifices in Vietnam were poorly remunerated. The fact remains, though, that the NZ Government compensated service personnel at the time for paying income tax while deployed in Vietnam.'

Peter Cooke, 13 May 2011

Note: This report was commissioned by RNZRSA to clarify the facts.