Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

‘Fair Dividend Rate’ under consideration

18 October 2006

‘Fair Dividend Rate’ under consideration

The FEC has announced that it will take further submissions from invited parties on the proposal that offshore share investments be taxed using a fair dividend rate method. No further call for public submissions will be made.

It is good that FEC is calling for further submissions on the fair dividend rate proposals, says Geof Nightingale a tax director with Ernst & Young.

"The fair dividend rate proposal, while better than the previous proposal to tax offshore shares, is still complex and in finalising the design and drafting of the law, it is important to get it right. Key to that is consultation with interested parties."

"It is unfortunate that time does not allow for further public submissions as this is a matter of great public interest as reflected by the 3,000 submissions received by the select committee on the initial highly unpopular proposals. The select committee must be careful to ensure that its invited parties represent the full range of the public interest," says Mr Nightingale.

"While the fair dividend rate approach under consideration does reduce some of the concerns regarding imposing capital gains tax on offshore shares, and solves the issue of not paying tax in a loss year, it will still leave a significant number of taxpayers dealing with complicated tax calculations on offshore shares where in the past they simply reported dividend income."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech