It emerged this week that New Zealand and Australia have settled a 12 year dispute over 'triangulation', or the tax treatment of companies in both countries which have subsidiaries in the other.
According to New Zealand-based newspaper, The Dominion Post, until now all profits from such companies have effectively been taxed twice, which has acted as a significant disincentive for trans-Tasman investment.
However, from April 4, the profits of firms doing business in each country will have their tax payments recognised by the other government. Speaking at a news conference on Wednesday, Australian Treasurer, Peter Costello announced that:
'It is a significant breakthrough. It will probably make it more attractive for New Zealand companies to earn Australian income because they will be able to stay in New Zealand (rather than crossing the Tasman for tax purposes).'
According to reports, the Australian Treasurer and his New Zealand counterpart, Dr Michael Cullen agreed that this week's meeting represents the first of a series of regular bilateral meetings to harmonize the tax, legal and regulatory regimes of the two countries.'
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment