Controlled foreign company regimes are sets of anti-avoidance rules. These regimes assist in preventing companies from diverting income through tax havens. Such regimes require the parent company to report the income of its subsidiary for New Zealand tax purposes as if it were its own. Complying...

In the late 1980s New Zealand signaled its intention to pass legislation to prevent resident shareholders from using controlled foreign companies to avoid tax. Controlled foreign companies all operate in a similar fashion. The regimes apply to non-resident companies that are owned or controlled...

In 1987, New Zealand taxpayers could avoid tax by establishing foreign corporations in which they held a controlling shareholding in low tax jurisdictions. This avoidance could occur in two ways. First, through using the foreign corporation to intercept passive income, such as interest or...