This article examines the potential conflict between thin capitalization rules and the OECD Model article on non-discrimination using the New Zealand regime exempli gratia. It is discriminatory to impose a higher tax burden on an enterprise funded with foreign capital. Yet that is the basis for...

This article begins by examining the relationship between thin capitalisation rules and double tax treaties. After examining the potential for a fundamental conflict in this area it looks at the OECD's attempts to resolve the problem (in section 2). In sections 3 and 4, the article examines the...

The Taxation (Beneficiary Income of Minors, Service-Related Payments and Remedial Matters) Act 2001 taxes the income of most beneficiaries of trusts who are minors at 33 per cent. This measure responded to parents strategically diverting income to their children via trusts, with a view to that...

New Zealand law provides for no special tax consequences on the formation of trusts. Transfers to trusts are taxable or non-taxable pursuant to the same rules that apply in respect of transfers to other people or entities. However, because there is more likely to be an element of gift in...

Under the New Zealand Income Tax Act 1994, taxpayers aggregate their gross income and subtract allowable deductions and losses carried forward from earlier years. The result is taxable income. The statutory rules for the taxation of trusts are set out in subpart HH of the Act. There are four...

In the mid 1990s, New Zealand began a project to rewrite the country’s income tax legislation. The first step of the rewrite was to reorder and reenact the 1976 Income Tax Act as the Income Tax Act 1994. Although the rewrite attempted clarify and simplify the legislation to make it more...

With the growth of electronic commerce tax authorities were faced with the challenge of applying traditional tax principles, which have been developed in times where business comprised the delivery of physical goods and services were provided in face-to-face transactions, to cross-border...

The basic deterrence model of tax evasion is described, its main predictions are derived and limitations and flexibility are outlined. Further, the model is interpreted in light of some key institutional features characterising tax enforcement in OECD countries. Throughout the survey, findings...

The paper discusses the availability tax grouping among EU countries as well as benefits and costs of this tax incentive. Article focuses on Poland, where real usage of this tax management tool is analysed. Grounds for its (low) popularity are investigated. Analysis was made primarily based on...

This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the relationships among the main functions of taxation—notably, raising revenue, redistributing income, and correcting externalities—and the mapping between these functions and various...