Sharechat Logo

Govt proposes new tax rules for securities

By NZPA

Tuesday 30th November 2004

Text too small?
The Government has today issued a discussion paper on proposed new tax rules aimed at improving New Zealand's reputation as an investment destination.

Revenue Minister Michael Cullen said the proposed rules covered transactions involving the lending of shares, units and bonds for a fee.

"Unlike many countries, New Zealand taxes securities lending on the basis of legal form rather than economic substance," Cullen said in a statement.

This might account for the "relatively small" local market for these transactions, he said.

"Other benefits of the new rules will be greater consistency with other tax jurisdictions, especially Australia, greater consistency with the treatment of other commercial transactions, and increased taxpayer certainty."

Cullen said the aim of the proposed rules was to "improve New Zealand's reputation as an investment destination."

The proposed package also included anti-avoidance rules to prevent the use of securities lending to give rise to undue tax advantages or avoidance.

"The focus of the rules will be on economic ownership and preventing shareholders selling imputation credits," Cullen said.

The closing date for submissions is January 31.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Telecom and Air New Zealand gain
MARKET CLOSE: NZX 50 snaps 4-day slide as earnings awaited; Mainfreight gains
MARKET CLOSE: Auckland Airport feels effects of global downturn
MARKET CLOSE: Shares fall with global slide; Rakon, Nuplex fall
MARKET CLOSE: Pumpkin Patch slips as investors mull downsizing
MARKET CLOSE: Weaker building stats weigh on Fletcher Building
MARKET CLOSE: Telecom and Contact Energy make gains
MARKET CLOSE: NZ shares mixed, FPA, Sky City fall, Rakon gains
MARKET CLOSE: NZ shares gain; Telecom lifts on Chorus, Sky City gains
MARKET CLOSE: NZ shares fall a second day; Wrightson drops on forecast