ARTICLE · 01 MAY 2006

NZ Tax Update - April 2006

DLA Piper Australia

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The Government has released an announcement outlining its proposed reforms to the taxation of investment income. The key changes being proposed relate to: The taxation of collective investment vehicles; The taxation of foreign portfolio investments.

AustraliaTax

Lynette Smith

Alasdair McBeth

Taxation of investment income – proposed reforms announced

The Government has released an announcement outlining its proposed reforms to the taxation of investment income. The key changes being proposed relate to:

The taxation of collective investment vehicles.

The taxation of foreign portfolio investments.

The announcement contains few changes from those previously proposed in the Government’s discussion document on the taxation of investment income (which was largely based on the Stobo Report). The areas where the announcement differs from the discussion document are minor in nature in our view and do not address the fundamental concerns raised in the majority of submissions on the discussion document regarding the taxation of foreign portfolio investments. The Government is promoting the changes as removing inequalities in the current tax treatment of investment income. However, to the extent that some inequalities are addressed, we consider that overall the

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