Trans-Tasman business dealings are common. However, whether a credit or offset is available for tax paid in the other jurisdiction can, if wrong decisions are made, result in a tax outcome more unpleasant than the morning after a Bledisloe Cup defeat.
This paper will examine:
- For Australian taxpayers doing business in New Zealand:
- NZ income-taxes applying to general business income
- When to declare such income in Australia
- How to claim FITO/exemption on these NZ taxes paid, in Australia
- Different outcomes, based upon the type of structure used including Trans-Tasman imputation, and
- For New Zealand taxpayers doing business in Australia, addressing the same concerns. That is, how to effectively use Australian taxes paid, as a credit in New Zealand.