Published on 01 Aug 14
by "THE TAX SPECIALIST" JOURNAL ARTICLE
There are two aspects of dealing with the New Zealand Inland Revenue which, when combined with the increased cooperation and information-sharing that has coincided with OECD activity in recent times, make New Zealand a more significant risk than before globally. These are the wide information-gathering powers of the New Zealand Inland Revenue, and the liberal application by the Commissioner of Inland Revenue of the general antiavoidance rule in New Zealand tax law, both supported by the New Zealand courts. The flow-on effect for inbound companies and individuals is an increased risk in New Zealand, and there is an increasing tax risk in other countries such as Australia.
This article examines in brief the general environment in New Zealand and then explores some current live tax issues which are particularly relevant in a trans-Tasman context, followed by some key observations for managing the resultant tax risks from an Australian perspective.
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