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


Trans-Tasman imputation credits issue still has a pulse

Trans-Tasman imputation credits issue still has a pulse

By Pattrick Smellie

Feb. 7 (BusinessDesk) – The Australian government has agreed to make the long-vexed issue of mutually recognising trans-Tasman imputation credits on dividends a topic for review in a forthcoming white paper on tax reform.

However, just how big a topic remains to be seen. The decision rated the last paragraph in a pro forma press statement issued by Prime Minister John Key after today’s meeting with his Australian counterpart, Tony Abbott, in Canberra.

In the statement, Key “welcomed Australia’s decision to make mutual recognition of imputation credits a matter for discussion in Australia’s Tax Reform White Paper.”

Known as franking credits in Australia, imputation credits prevent the double taxation of company dividends in the hands of shareholders, when the company has already paid tax.

Businesses on both sides of the Tasman have long argued that imputation credits should be recognised by the tax authorities of one another’s countries, with a significantly greater interest in the subject recently by major Australian corporates.

However, the Australian Treasury and tax authorities have never favoured the idea, which they argue would trigger substantial lost corporate tax revenue on the Australian side of the equation, reflecting the comparatively much larger Australian investment in New Zealand than vice versa.

Both countries have had the systems since the late 1980s, and the argument has continued throughout that time, without resolution.

Key also announced that foreign visitors to the Cricket World Cup, being jointly hosted by Australia and New Zealand, would only need one visa to attend the tournament, which could see them travelling to and from both countries to follow it in its entirety.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news