About trans-Tasman imputation
On 23 June 2003 the New Zealand Government introduced the Taxation (Annual Rates, GST, Trans-Tasman Imputation and Miscellaneous Provisions) Bill which includes changes to address the double taxation that can arise on certain trans-Tasman investments.
This legislation was enacted on 25 November 2003 in the Taxation (GST, trans-Tasman imputation and miscellaneous provisions) Act 2003.
In brief, the new legislation allows:
- Australian companies to elect to maintain an Imputation Credit Account (ICA) in New Zealand
- Wholly owned groups of companies (either, Australian and/or New Zealand) to elect to form groups for imputation purposes only.
- Both types of elections to be made for the 2004 imputation year - 1 April 2003 to 31 March 2004) onwards.
- Elections from Australian companies wishing to maintain a New Zealand ICA, must be received 30 days prior to the payment of any dividend including an "New Zealand imputation credit".
Details of the legislation, including examples, are included in the February 2004 edition of Inland Revenue's Tax Information Bulletin (TIB).
Background information
See the commentary to the bill for detail on all the proposed changes for trans-Tasman Imputation (June 2003).
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PDF | 27 pages | 862 KB
You may also like to refer to the original discussion document issued in March 2002, which is linked under 'Related websites' on the right.
Date published: 01 Jan 2005
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