Tax Issues High On The Agenda At Trans-Tasman Business Forum

by Mary Swire, Tax-News.com, Hong Kong

28 April 2005

Trans-Tasman tax issues, particularly those affecting shareholders, will feature on the agenda at a meeting of the Australia New Zealand Business Forum, which is taking place in Melbourne this week.

The forum, which is made up of business leaders, politicians, government officials and academics, is working towards the establishment of a trans-Tasman single market encompassing Australia and New Zealand

Bank of New Zealand chairman Kerry McDonald, co-chair of the forum, has highlighted the need to ensure that shareholders in companies operating on a trans-Tasman basis can fully access dividend imputation and franking credits.

Under current rules, franking or imputation credits are allocated in proportion to the percentage of shareholders residing in either country rather than where the tax is paid - a situation which can result in double-taxation when shareholders cannot access sufficient credits.

The forum is also set to debate a number of other regulatory issues, including a proposal to harmonise trans-Tasman banking prudential supervision.

McDonald has argued that a trans-Tasman single market will improve the competitiveness of both nations within the global economy, and warned that neither can afford to pass up this opportunity.

Recommended