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

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election