Treatment of dual resident by double tax agreement – standardising description

Clauses 71, 192, 213(23), (24) and (26)

Submission

(Matter raised by officials)

Several clauses in the bill contain amendments with taxation effects on a person who is a dual resident.  The effects may depend on whether there is a double tax agreement treating the person as being resident in New Zealand or on whether there is a double tax agreement treating the person as being resident in a foreign country or territory.  The references to the relevant treatment differ in detail between the clauses and should be standardised.

Comment

Reference to the tax treatment of a dual resident under a double tax agreement should be standardised in the current bill.

There is also some variation between such references in existing provisions of the Income Tax Act 2007.  It is proposed that those provisions be standardised in a future bill.

Recommendation

That the submission be accepted