The Government has released a document detailing the proposed changes to profit distribution plans, and are calling for public comment. As announced on the 16th of April, the Government is looking to implement new legislation in regards to Profit Distribution Plans (PDP). Specifically it aimed to deal with the situation under PDP schemes where shares which are given to shareholders by a company are immediately sold back to the company, which not currently covered by tax legislation. The Government is seeking feed ... Read More

The Government has released statements saying that they are seeking to clarify matters around taxation of certain profit distribution plans. According to a media release made by Finance Minister Bill English and Revenue Minister Peter Dunne, the Government is concerned about the taxation consistency found between standard dividend reinvestment plans and bonus issues of shares distributed under profit distribution plans (PDPs). Regular dividend reinvestment allows receivers to choose between receiving cash dividends or shares. Both options are subjected to the imputation and taxation system. ... Read More

As a reiteration and a clarification, Revenue Minister Peter Dunne has talked recently about the Fair Dividend Rate (FDR) on overseas investments the and taxation of it. Revenue Minister Peter Dunne has spoken out about the recent confusion in the media and practitioners about the Fair Dividend Rate. It is the opinion of Peter Dunne that the new FDR will make taxation fairer than those in place earlier. In his media release Mr. Dunne characterized the new rules via an example. In the case ... Read More