Vol 31 No 3
01 Apr 2019

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
No limit
 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