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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: