www.rewriteadvisory.govt.nz

The Issues Log

Issue: HC 24(2)(a), HH 4(2)(a)

Submission Number	115
Submitter	Chapman Tripp
Section / Provision Income Tax Act 2007	HC 24(2)(a)
Section / Provision Income Tax Act 2004	HH 4(2)(a)
Date Received	21/07/2009
Description of issue	Section HC 24(2) seems to attempt to deny a trustee a tax credit arising under Parts L or M of the Act (e.g. imputation credits (IC)) in \"determining\" its individual tax liability in respect of trustee income (notwithstanding that tax credits are used to \"satisfy\" a tax liability, they are not used to \"determine\" a taxpayer\'s tax liability). Give examples: If a trust received and accumulated a dividend with ICs attached, it may not be entitled to use the IC attached to that dividend to satisfy its tax liability in respect of that dividend.
Section / Provision Income Tax Act 1994	HH 4(2)(a)
Status	Finalised
Outcome	The Panel concludes an unintended legislative change arises in respect of section HC 24(2) of the Income Tax Act 2007. The amendment relating to this should be retrospective.

Home | Contact Us | Background | Issues Log | Submission Form | Panel Statement | Maintenance Items Log |