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


Hepatitis A Link: Increased Surveillance Of Imported Frozen Berries

The Ministry for Primary Industries (MPI) Director General has issued a statement warning of a potential risk associated with imported frozen berries following four human cases of Hepatitis A thought to be linked to packaged imported frozen berries. More>>


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news