Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Tax incentives for migrating companies to go

21 March 2005
Media Statement

Tax incentives for migrating companies to go

The government will legislate to ensure companies pay New Zealand tax on income earned before they migrate from New Zealand, Revenue Minister Michael Cullen announced today.

“Under present law, they can leave without having necessarily paid tax on all the income they earned while resident here.

“This is both unfair and inconsistent with the tax treatment of companies that liquidate as they are subject to tax on a higher proportion of their income,” Dr Cullen said.

“The change will put migrating companies on a par with liquidating companies.
When they migrate, companies will be deemed to have been liquidated at that point and to have paid a dividend to shareholders, upon which they must withhold tax.

“Companies will be allowed to attach imputation credits to these deemed dividends, and – to prevent double taxation – the amount of the distribution can be treated as an additional amount of tax-paid share capital that can be returned to shareholders.

“The change will be included in the next taxation bill to be introduced into Parliament and, once enacted, will be effective from today,” Dr Cullen said.

Details of the proposed change are available in a special report, “Proposed tax rules for migrating companies”, published at www.taxpolicy.ird.govt.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news