Skip to main content
shopping_cart

Your shopping cart is empty

Australian TOFA implications for insurers from the NZ Sovereign Assurance case

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.

Author profiles:

Author Photo - James Hamblin
James Hamblin


 
Author Photo - Joanne DUNNE
Joanne DUNNE
Current at 13 June 2012 Click here to expand/collapse more articles by Joanne DUNNE.

 

Copyright Statement