Published on 01 Apr 15
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Decisions of the New Zealand courts in the Sovereign Assurance case considered the application of New Zealand’s taxation of financial arrangements (TOFA) rules to reinsurance treaties entered into by a New Zealand insurer. The New Zealand rules parallel Australia’s TOFA regime in Div 230 of the Income Tax Assessment Act 1997, and New Zealand cases therefore have relevance in Australia.
This article first outlines New Zealand’s financial arrangements rules, and the facts and main holdings in Sovereign Assurance. The authors then compare New Zealand’s financial arrangements rules to the Australian TOFA rules and consider whether the result could have been different if it had been decided in Australia. The authors conclude that the case shows that even very longstanding arrangements which are commonly used by industry, such as reinsurance treaties, can lead to results under TOFA which may be unanticipated.
James is a Special Counsel in the MinterEllison Tax Group with over 10 years of tax experience.
James advises on a variety of stamp duty, land tax and income tax matters, including those arising in the context of mergers, acquisitions and divestments. James specialises in providing tax structuring, due diligence and general advisory services for both domestic and offshore clients across a range of sectors including commercial and residential property, infrastructure, hotels, student accommodation and aged care. He also assists clients in dealing with State and Federal revenue authorities in various tax administration and compliance matters.
James is a member of the Tax Institute’s Victorian State Taxes Committee and is actively involved in consulting with State Treasuries and Offices of State Revenue on the implementation and administration of new tax laws.
- Current at
12 September 2019
Joanne Dunne, CTA, is a Director at
PwC, Melbourne. She was formerly
a tax partner at law firms in both
Australia and New Zealand. She has
more than 20 years tax experience in
general income tax, GST, international
tax and tax controversy. Joanne is a
member of a wide range of professional
organisations, including The Tax
Institute’s Tax Disputes Committee
(of which she is co-chair), and she
represents The Tax Institute on the
ATO’s Dispute Resolution Working
- Current at
01 November 2018