Imputation Franking Credit tagged posts
April 12, 2012 New Zealand Taxation
The current tax treatment of dividend returns between Australia and New Zealand is “alien” to the goals of the two country’s Closer Economic Relationship Agreement and needs to be addressed as quickly as possible.
According to a recent statement made by the chief executive of Business NZ Phil O’Reilly, the governments of Australia and New Zealand need to act urgently to address the issue of double taxation on dividend returns between the two countries, in order to boost cross border business.
Phil O’Reilly explained that one of the key issues int he bilateral relations between Australia and New Zealand that currently needs to be discussed is modernizing the regulations imputation and franking credits, which are still not mutually recognized by the tax authorities in both countries...Read More
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 economiesRead More