Sharechat Logo

Tasman tax geometry not symmetrical

Friday 22nd September 2000

Text too small?

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.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Vital proceeds with $37m first stage of Wakefield Hospital redevelopment
Risks from exploration ban coming to pass
Pushpay lifts annual earnings guidance; shares rise
Treasury mindful of gaps in living standards framework
Cannasouth slumps on debut as investors back blue-chips
Zespri signals profit growth, trims expected fruit and services payment
Wider annual current account deficit meets expectations
Wider annual current account deficit meets expectations
19th June 2019 Morning Report
NZ dollar firms on signs US-China trade talks moving forward

IRG See IRG research reports