Tasman tax geometry not symmetrical

Changes to tax law on both sides of the Tasman are needed to deal with the "triangulation problem" which is discouraging cross-Tasman capital flows.

New Zealand shareholders of an Australian company with a New Zealand subsidiary cannot access New Zealand imputation credits passing from the New Zealand subsidiary to its Australian parent. The imputation credit is a credit against New Zealand tax and is worthless to an Australian company which cannot pass the credit on to its own New Zealand shareholders.

A solution is to allow Australian companies to pay special dividends to New Zealand shareholders with a credit attached for the otherwise lost imputation credit, according to Ernst & Young's Alan Judge, chairman of the Institute of Chartered Accountants tax committee.

Another is for mutual recognition of imputation credits, he said.

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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Spark New Zealand FY26 Results Announcement Date
OCA - Oceania bond offer - interest rate set
VNT - Appointment of Managing Director and Group CEO of Ventia
ATM - a2MC declares $300 million special dividend
June 25th Morning Report
OCA - Oceania Healthcare launches secured fixed rate bond offer
ATM - a2MC receives SAMR approval
June 22nd Morning Report
SPG - Retirement of Director Michelle Tierney
APL - AGM Date and Director Nominations