Imputation credit tagged posts

Tax Change Would Boost Trans-Tasman Economy

September 3, 2012 International TaxationNew Zealand Taxation

Life, the universe, and everythingCalls have been raised to take further steps to create closer economic ties between Australia and New Zealand by bringing the two countries’ tax systems closer.

Last week a new research was co-published by the Sydney’s Centre for International Economics and New Zealand Institute of Economic Research, showing that the economies of Australia and New Zealand could grow by a additional NZD 6.9 billion over the next 18 years if changes were made to the trans-Tasman tax rules to stop the double taxation of dividends.

The research was commissioned by the Australian Leadership Forum to examine the potential effects of scrapping the current system for franking and imputation credits, and establishing a new “streamlined” tax system which would allow taxpayers to claim personal tax refunds on the ta...

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Tax Policy Program Announced

March 24, 2009 New Zealand Taxation  No comments

The New Zealand Government has released statements in regards to a tax policy work program which aims to alter New Zealand taxation matters with the aim of raising New Zealand’s status in the world’s economy.

There are a number of changes proposed in the taxation review, the most obvious of these is the previously mentioned 30/30/30 rule. This would see personal, company and trustee tax aligned to the maximum rate of 30%. Double taxation agreements are also on the plan, with updating some double taxation agreements and aiming to create new ones being the main goal. Imputation credits are set to be reviewed also.

The complete list of changes can be viewed at the Inland Revenue Department’s tax policy website, here.

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Imputation Credit Expansion

August 19, 2008 New Zealand Taxation  No comments

The New Zealand Government has released discussion documents which call for comment on the current system, proposal for change, and invitation for system suggestions.

Current imputation credit regulation allows for New Zealand shareholders to offset their income tax obligation with imputation credits attached to the dividends they receive from a New Zealand income tax paying company. These rules do not currently extend to tax-exempt entities or charities, as they have no income tax obligation which needs to be offset. As this means that unutilized imputation credits are effectively wasted when dealing with tax-exempt entities, there have been numerous calls for revisal of the system.

The New Zealand Government has not ruled out the possibility of imputation credit refunds for tax-exempt en...

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Imputation and Franking Credit Recognition

August 15, 2008 International TaxationNew Zealand Taxation  No comments

According to information provided by the New Zealand Parliament, the New Zealand and Australian governments are working on mutual recognition of Imputation and Franking Credit. Under the current tax regulations, investors have to pay tax on any dividends earned in New Zealand or Australia.

If the proposed recognition were to be adapted, investors and shareholders will be able to choose in which country they pay the tax on their dividends.

The issue of double taxation on dividends has been raised for many years, and if the proposed regulation were to be approved it would help the processes of further integration of the New Zealand and Australian economies

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