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Taxation (International Investment and Remedial Matters) Bill (Consistent) [2010] NZBORARp 73 (7 October 2010)

Last Updated: 11 May 2020

Taxation (International Investment and Remedial Matters) Bill

7 October 2010

ATTORNEY-GENERAL LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990: TAXATION (INTERNATIONAL INVESTMENT AND REMEDIAL MATTERS) BILL

1. We have considered whether the Taxation (International Investment and Remedial Matters) Bill (IRD 14625/1.4) (the “Bill”) is consistent with the New Zealand Bill of Rights Act 1990 (the “Bill of Rights Act”). We understand that the Bill is likely to be considered by the Cabinet Legislation Committee at its meeting on Thursday, 14

October 2010.

2. The purpose of the Bill is to continue the reform of the way in which the Income Tax Act 2007 applies to gains of New Zealand residents from income interests in Foreign Investment Funds (“FIFs”) and gains of foreign residents from interests in New Zealand companies. For example, the Bill proposes changes to the rules and methods for calculating FIF income from FIFs that are not Controlled Foreign Companies.

3. The Bill complements the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009, which changed the way in which a resident’s attributed Controlled Foreign Company income is calculated.

4. We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act. This advice has been prepared by the Public Law Group and the Office of Legal Counsel.

Jeff Orr

Chief Legal Counsel

Office of Legal Counsel

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Taxation (International Investment and Remedial Matters) Bill. It should not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the

Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.