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

 

Boost to trans-Tasman economies if double taxation removed

Media release

3 September 2012

Boost to trans-Tasman economies if double taxation removed

Earnings, investment and saving would be boosted in Australia and New Zealand if double-taxation of dividends was removed, the Australia New Zealand Leadership Forum says.

At present companies based in Australia or New Zealand with operations in the other country have their profits taxed twice, since neither country recognises the other’s system for offsetting tax credits.

The Australia New Zealand Leadership Forum wants the governments of both countries to change their tax law to abolish the double taxation and has commissioned analysis by the Centre for International Economics and NZIER to show what the economic benefits would be.

The analysis released today indicates that removing double taxation would bring additional growth of at least NZ$5 billion in the trans-Tasman economy over 20 years, as well as further significant growth resulting from increased competition and innovation and reduced management time spent on tax avoidance.

The analysis will inform the work of the Productivity Commissions of New Zealand and Australia as they consider the question of mutual recognition of imputation and franking credits.

Australian Co-Chair of the Forum Rod McGeoch said enhancing business investment was a critical issue and a solution that facilitated greater investment flow in both directions would be welcome in both countries.

New Zealand Co-Chair Jonathan Ling said resolving double taxation of dividends would be a key step towards better integration of the New Zealand and Australian economies.

The Productivity Commissions are expected to release their report on the issue this month.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>

ALSO:

Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>

ALSO:

Research: Climate Change Throws Tree Seeding Out Of Sync – New Study

Climate change is negatively affecting tree reproduction by throwing seed production systems out of synchronisation, according to a new international study co-authored by a University of Canterbury scientist. Many tree species worldwide produce large ... More>>

ALSO:


Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>

ALSO:

Science Media Centre: Flooding could release toxic gas – Expert Reaction

A chemical substance known as ouvea premix stored at an old paper mill in Mataura could release toxic ammonia gas if it comes in contact with water.More>>

ALSO: