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
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: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports