The 'Other' Associated Persons Reform: Analysis of the 2009 Taxation Law Amendments to the Non-Land Provisions

New Zealand Journal of Taxation Law and Policy, Vol 18, No 1, March 2012, 49-65

21 Pages Posted: 16 May 2012

See all articles by Mike Peart

Mike Peart

affiliation not provided to SSRN

Craig Elliffe

University of Auckland - Faculty of Law

Date Written: March 16, 2012

Abstract

Have the “associated person” reforms to the New Zealand Income Tax Act 2007, enacted in October 2009, gone too far? Were they necessary and should they have such wide ranging effects in the non-land taxing provisions?

Much of the debate which arose from the reform to the “associated person” rules was generated over the consequences that would arise in respect of transactions involving profits made on the sale of land. This article investigates the consequences arising from the recent reforms to the “associated person” rules as they affect the other (non-land) provisions and excluding the effects on the land provisions. This paper will view the changes as a whole and analyse whether there was sufficient cause to warrant such extensive reworking of the old provisions. Attention will also be given to the claims made by some parties that the changes are too broad, and constitute policy makers going one step too far. A conclusion will be made regarding whether the changes were too sweeping, and a proposal for a more rational reform will be put forward.

Keywords: associated persons, New Zealand anti-avoidance provisions, tax reform

JEL Classification: K34

Suggested Citation

Peart, Mike and Elliffe, Craig Macfarlane, The 'Other' Associated Persons Reform: Analysis of the 2009 Taxation Law Amendments to the Non-Land Provisions (March 16, 2012). New Zealand Journal of Taxation Law and Policy, Vol 18, No 1, March 2012, 49-65, Available at SSRN: https://ssrn.com/abstract=2060755

Mike Peart

affiliation not provided to SSRN ( email )

Craig Macfarlane Elliffe (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

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