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


Amendment to 2006 Tax Bill

Wednesday, 17 May 2006

Amendment to 2006 Tax Bill

The Minister of Revenue, Peter Dunne, announced today, that after listening carefully to public submissions, the Government will bring in an amendment to the Tax Bill introduced into Parliament today, with the intention of calming ill-founded fears among New Zealanders with overseas investments in companies such as the Guinness Peat Group.

"The Government is eager that the public see the proposed changes to taxation on overseas investments as fair and reasonable and we have listened very carefully to the hundreds of submissions on this proposal," said Mr Dunne.

He said the Government had agreed to a broad proposal that would exclude from the new tax rules for overseas investments in shares, for a period of five years, interests in foreign companies where:

a) The company is resident, and listed on a recognised exchange in Canada, Germany, Japan, Norway, Spain, the United Kingdom or the United States and

b) The company is liable to income tax in the foreign country, because it has its domicile, residence, place of incorporation, or place of management there; and

c) The company is listed on a recognised exchange in New Zealand; and

d) The company is widely held and has a substantial New Zealand shareholder base; and

e) The company is not a mutual fund, or investment trust.

"The five-year holiday will give those companies the opportunity to consider shifting their headquarters to New Zealand, which will bring considerable benefits to this country," Revenue Minister Peter Dunne said.

"The five-year window will also allow time for completion of the government's current review of the controlled foreign company tax rules," he said. "The review will include consideration of whether the rules should distinguish between active investment, such as investing in factories, and passive investment, such as investing in securities.

"This change will be brought in by way of Supplementary Order Paper to the Taxation (Annual Rates, Savings Investment, and Miscellaneous Provisions) Bill," said Mr Dunne.

The Bill was tabled in Parliament today and its first reading is expected next week.


© 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