Contents
Chapter 1 - Summary
Chapter 2 - Background
- New Zealand’s current tax rules
- The problem
- The international response to the issue
- Diverted profits taxes
- The New Zealand response
- New Zealand’s international tax framework
Chapter 3 - Permanent establishment avoidance
Chapter 4 - Amendments to the source rules
- Background
- The problem
- Permanent establishment source rule
- Anti-avoidance source rule
- Life insurance source rule
- Royalty substitution rule
Chapter 5 - Strengthening the transfer pricing rules
- What is transfer pricing?
- Transfer pricing is becoming increasingly important
- New Zealand’s transfer pricing rules need to be updated
- Including an explicit reference to the OECD transfer pricing guidelines
- Aligning the transfer pricing rules with economic substance
- Reconstruction of transactions
- Arm’s length conditions
- Burden of proof
- Transfer pricing documentation
- Large multinationals are already required to do country-by-country reporting
- Master file and local file documentation
- General requirements to document transfer pricing practices
- Penalties for lack of transfer pricing documentation
- Time bar for transfer pricing tax positions
- Applying the transfer pricing rules to investors acting in concert
Chapter 6 - Administrative measures
- Background
- Proposed rules for New Zealand
- Non-cooperation
- Assessments
- Payment of tax in dispute
- Collection of tax
- Collection of information
- Penalties for not providing information