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Inland Revenue

Tax Policy

Regulatory impact assessment
Published 8 September 2021

Local authority taxation – dividends and deductions

Regulatory impact statement prepared by Inland Revenue on 17 June 2021 about improving the integrity of local government taxation and preventing local authorities from effectively transferring the benefit of their exempt status to their taxable council-controlled organisations.

The proposal was included in the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, introduced into Parliament on 8 September 2021 and enacted on 30 March 2022.