Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

‘Fair Dividend Rate’ under consideration

18 October 2006

‘Fair Dividend Rate’ under consideration

The FEC has announced that it will take further submissions from invited parties on the proposal that offshore share investments be taxed using a fair dividend rate method. No further call for public submissions will be made.

It is good that FEC is calling for further submissions on the fair dividend rate proposals, says Geof Nightingale a tax director with Ernst & Young.

"The fair dividend rate proposal, while better than the previous proposal to tax offshore shares, is still complex and in finalising the design and drafting of the law, it is important to get it right. Key to that is consultation with interested parties."

"It is unfortunate that time does not allow for further public submissions as this is a matter of great public interest as reflected by the 3,000 submissions received by the select committee on the initial highly unpopular proposals. The select committee must be careful to ensure that its invited parties represent the full range of the public interest," says Mr Nightingale.

"While the fair dividend rate approach under consideration does reduce some of the concerns regarding imposing capital gains tax on offshore shares, and solves the issue of not paying tax in a loss year, it will still leave a significant number of taxpayers dealing with complicated tax calculations on offshore shares where in the past they simply reported dividend income."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>


Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>