Miscellaneous 2020

New Zealand's anti-hybrid rules: Do you have an issue?

Source: The Tax Specialist Journal Article

Published Date: 1 Feb 2020


Like Australia, New Zealand has enthusiastically adopted a range of measures in response to the OECD's recommendations concerning base erosion and profit shifting. Of these, the New Zealand reform that is most complex and has the greatest potential to result in unintended outcomes is the introduction of anti-hybrid rules. New Zealand's anti-hybrid rules were enacted in June 2018 with application to income years commencing on or after 1 July 2018. This article highlights some of the differences in tax treatment between the New Zealand and Australian tax systems that may give rise to a hybrid mismatch, before considering a series of practical examples illustrating how the anti-hybrid rules may affect a range of common arrangements. As the examples illustrate, although both New Zealand's and Australia's anti-hybrid measures are based on the same OECD recommendations, the rules differ
in important respects and may produce unexpected consequences in some cases.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2020

Share this page