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 senior associate in the Melbourne office of Minter Ellison. He advises Australian and international clients on a variety of corporate income tax and stamp duty matters, including on the tax and duty implications of acquisitions, divestments and financing arrangements. James also assists clients with various tax and duty administration and compliance matters, for example, obtaining rulings and responding to risk reviews and audits. James works with clients across a broad range of industries that include real estate, financial services, funds management, health and aged care.
- Current at
01 April 2016
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