TIB - April 2019
In this issue: New legislation - Life reinsurance and BEPS, Orders in Council, Br Prd1 9/01, IS 19/01, SPS 19/01, Operational position on IS 19/01, ITR30, Special Determination S61, Special Determination S62, Legal decisions - case notes.
The table published in the Hybrid mismatches item on page 42 (titled "Table 1: New Zealand's implementation of the OECD recommendations") is incorrect.
The second part of that table ("Specific rule recommendations") should have contained the following information:
|Section||Rec.||Hybrid mismatch||Hybrid arrangement||Corresponding branch agreement||Counteraction||Scope|
|CW 9||2||D/NI||Hybrid financial instruments – specific rules**||2.1 Payee country should turn off any exemption
2.2 Restrict foreign tax credits to hybrid arrangement
|Subpart EX||5||D/NI||Reverse hybrids – specific rules***||Disregarded branch structure and diverted branch payments||5.1 Improve CFC and other offshore rules
5.2 Turn off transparency/non-taxation
5.3 Improved disclosure
|Specific to NZ's domestic law|