Issues in the Qualification of Taxable Entities and Treaty Protection: The New Zealand IFA Report to the Mumbai Congress (October 2014)

IFA Cahiers de droit fiscal international (Mumbai Congress Subject 2) 2014

42 Pages Posted: 6 Mar 2014

See all articles by Craig Elliffe

Craig Elliffe

University of Auckland - Faculty of Law

Andy Archer

Ernst & Young Limited

Date Written: November 1, 2013

Abstract

This is the New Zealand Report on subject 2 to the IFA Congress on the Qualification of Taxable Entities and Treaty Protection. It considers the questions raised by the General Reporters and concludes: 1) New Zealand is likely to rely on entity qualification in a manner broadly consistent with the OECD Partnership Report; 2) Treaty entitlement: Entity qualification is primarily determined by the liability to tax in the residence jurisdiction. 3) Distributive rules: Entity qualification is primarily determined by the liability to tax in the residence jurisdiction. 4) Employment income: the State of source is significant in the application of Article 15. 5) Directors’ fees: The State of residence of the entity is significant in the application of Article 16. 6) Foreign tax credits: The New Zealand treaty network makes it clear that the foreign tax credit under article 23 is subject to the domestic tax credit rules in subpart LJ of the New Zealand Income Tax Act 2007.

Keywords: Hybrid entities, partnership report, treaty entitlement, distributive rules, employment income, directors fees, foreign tax credits

JEL Classification: K34

Suggested Citation

Elliffe, Craig Macfarlane and Archer, Andy, Issues in the Qualification of Taxable Entities and Treaty Protection: The New Zealand IFA Report to the Mumbai Congress (October 2014) (November 1, 2013). IFA Cahiers de droit fiscal international (Mumbai Congress Subject 2) 2014, Available at SSRN: https://ssrn.com/abstract=2404716

Craig Macfarlane Elliffe (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

Andy Archer

Ernst & Young Limited ( email )

EY Building, 2 Takutai Square
Auckland, 1140
New Zealand

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