Amendment to Stamp and Cheque Duties Act 1971
Summary of proposed amendment
The Taxation (International Investment and Remedial Matters) Act 2012 replaced section 86I of the Stamp and Cheque Duties Act 1971. This change was to accommodate a zero rate of AIL for retail bonds that are traded in New Zealand.
However the replacement of section 86I failed to incorporate a 2010 amendment that clarified that AIL could be paid for the purposes of “an exemption under a double tax agreement”. The bill reinstates this 2010 amendment.
The proposed amendment will apply from 7 May 2012, the date that the Taxation (International Investment and Remedial Matters) Act replaced section 86I.