Annex 3
Relationship between the OECD’s action plan and New Zealand’s existing tax rules
| BEPS technique | OECD action item | Corresponding New Zealand tax rules |
|---|---|---|
| Excessive debt funding or interest deductions | 3 | Thin-capitalisation rules Transfer pricing rules |
| Shifting mobile income or assets offshore | 4 | Rules for controlled foreign companies and foreign investment funds |
| Manipulating prices in related-party transactions | 8–10 | Transfer pricing rules |
| Hybrid mismatches (These occur because countries have different tax rules for distinguishing between debt and shares or companies and partnerships) |
2 | Taxing/reclassifying dividends that are equivalent to debt Stapled stock rules Double tax agreements with fiscally transparent entity provisions |
| Artificial business structures that enable economic activity to be carried out with no taxable presence | 7 | Source rules and permanent establishment |
| Structuring into lower withholding tax rates on cross-border payments of dividends, interest and royalties. | 6 | NRWT rules Double tax agreements with anti-treaty shopping rules |