New Zealand Taxpayer Not Entitled to Foreign Tax Credit for Tax Sparing Granted to Controlled Foreign Company

Journal
Holmes, K.J. (Kevin)
New Zealand
Asia-Pacific Tax Bulletin 2018 (Volume 24), No. 4
PriceUSD 45

This note summarizes the New Zealand Court of Appeal’s decision in Commissioner of Inland Revenue v. Lin, which overturned the High Court’s 2017 ruling that a New Zealand-resident taxpayer with relevant interests in certain controlled foreign companies in China was entitled to a foreign tax credit for both tax paid in China by the controlled foreign companies and to tax spared in China arising from tax concessions granted to those companies.