Browsing by Author "Dunbar, David"

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ACCY232: Accounting: Auditing and Tax
(Victoria University of Wellington, 2007) Dunbar, David
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ACCY316: Accounting: Advanced International Taxation
(Victoria University of Wellington, 2005) Dunbar, David
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ACCY410: Accounting: Advanced Taxation
(Victoria University of Wellington, 2010) Dunbar, David
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COML111: Commercial Law: Law for Business
(Victoria University of Wellington, 2009) Dunbar, David
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COML111: Commercial Law: Law for Business
(Victoria University of Wellington, 2005) Dunbar, David
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COML111: Commercial Law: Law for Business
(Victoria University of Wellington, 2006) Dunbar, David
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COML111: Commercial Law: Law for Business
(Victoria University of Wellington, 2010) Dunbar, David
Open Access
A Historical Review of the CFC & FIF Regimes: Part One 1987 to 1 December 2003
(Te Herenga Waka—Victoria University of Wellington, 2004) Dunbar, David
The CFC & FIF regimes were originally enacted to prevent New Zealand taxpayers using tax havens to avoid or defer their New Zealand tax obligations. However both regimes contain a number of provisions that have not been adopted by any of the major OECD countries or any of NZ major trading partners. For example, the CFC regime does not contain an active income exemption and the FIF regime often taxes unrealised capital gains. Those features have lead to widespread criticism and a range of taxpayer responses to ameliorate the negative impact the current rules have on legitimate off shore trade and investment decisions. Part one of this article examines: the tax planning opportunities which both regimes were designed to curtail, the behavioural responses of taxpayers to the perceived harshness of the current law, and the McLeod Committee recommendations, which were designed to achieve a more appropriate balance between taxpayers, legitimate commercial offshore investment decisions and the ongoing threat posed by tax havens.
Open Access
Judicial Techniques for Controlling the New Zealand General Anti-Avoidance Rule: a Case of Old Wine in New Bottles, from Challenge Corporation to Peterson
(Te Herenga Waka—Victoria University of Wellington, 2005) Dunbar, David
The judgment of the Privy Council in the recent Peterson case highlights the difficulty of deciding whether a general anti-avoidance rule should apply to set aside for tax purposes a passive investment structure which sought to take advantage of a number of unrelated provisions in the Income Tax Act 2004 (ITA). The taxpayer invested in a film known as Lie of the Land which was a commercial failure. The film was never released yet the tax system not only underwrote the taxpayer's investment, but it also enabled him to make a cash profit from what could be fairly described as a financial disaster. The financial success or failure of the investment (post tax) turned on whether the courts were prepared to allow the Commissioner of Inland Revenue (CIR) to apply the general anti avoidance rule to cancel the cash profit made by the taxpayer. That case is the motivation for this working paper.
Open Access
Tax and volunteering: empirical evidence to support recommendations to solve the current problems surrounding the tax treatment of volunteers’ reimbursements and honoraria in New Zealand
(Te Herenga Waka—Victoria University of Wellington, 2008) Tan, Letisha; Dunbar, David; Cordery, Carolyn Joy
On I November 2007 the Minister of Finance and the Minister of Revenue asked for submissions on ways to simply the current law on the taxation of reimbursement and honoraria paid volunteers in the non-profit sector. A number of proposals were outlined in a Inland Revenue Department issues paper released on 1 November. This working paper presents the results of a survey of 1537 individuals and 224 organisations who replied to a web based questionnaire that was conducted in August and September 2007. The results have been used to support a number of recommendations towards simplification and clarification of current tax law.
Open Access
Trans-Tasman Triangular Taxation Relief: Part One
(Te Herenga Waka—Victoria University of Wellington, 2002) Dunbar, David
In March 2002 the finance ministers of New Zealand and Australia released a joint discussion document on trans-Tasman triangular taxation. The proposals represented are a significant step towards addressing one of the major taxation barriers to trans-Tasman investment. The discussion document invited interested parties to present submissions by 3 May 2002. This article examines: the origins of triangular taxation, the merits of the New Zealand and Australian government’s joint proposal (called “The Pro rata Approach to Triangular Taxation”), an alternative solution, and ad hoc solutions. From the perspective of trans-Tasman individual shareholders, the pro rata proposal is an improvement compared to the current position, but it is not the optimal solution. From their perspective the most tax effective option is what is known as the “full streaming” solution. However both governments are concerned about the fiscal risks of the streaming alternative and the fact that it might signal a greater acceptance of streaming which is not the case.
Open Access
Trans-Tasman Triangular Taxation Relief: Part Two
(Te Herenga Waka—Victoria University of Wellington, 2003) Dunbar, David
In March 2002, the New Zealand and Australian governments released a joint discussion document, Trans-Tasman Triangular Tax. The joint media statement noted that: Clearly, triangular tax reform requires a bilateral approach that preserves the Australian and New Zealand tax bases and is acceptable to business and government in both countries… The mechanism under consideration is one that allocates both Australian franking credits and New Zealand imputation credits to shareholders in proportion to their ownership of a company. This mechanism is known as the “pro rata allocation” model, and its adoption was confirmed in February 2003. The discussion document noted that the following alternative methods to relieve triangular taxation had been considered by both governments, but were rejected: apportionment, mutual recognition (including pro rata revenue sharing), streaming. The Ministers invited interested parties to comment on the workability of the pro rata revenue sharing proposal, and said that their advice would be taken into account in deciding whether or not to proceed with this proposal. This working paper examines the strengths and weaknesses of the pro rata allocation mechanism and contrasts that solution with the streaming alternative. From the perspective of a New Zealand individual shareholder, the analysis will demonstrate the significant additional taxation advantages associated with streaming. Accordingly it is possible that the latest initiative may not produce a feasible solution. Trans-Tasman companies may continue to devise tax-driven strategies that provide their individual shareholders with an after-tax rate of return which is comparable with what they would have received under the streaming model. Also examined, will be a range of debt, equity, and profit repatriation strategies which are currently used to solve triangular taxation. These include floating special purpose subsidiaries, the use of hybrid instruments, and techniques to minimise Australian capital gains tax. The pro rata allocation model is unlikely to lead to any significant decrease in Trans-Tasman tax-driven investment.