The Government of New Zealand has been published an omnibus tax bill intended to bring significant clarity to the tax rules and make them easier for taxpayers to understand. The changes will restrict how much debt foreign investors are able to place in New Zealand, and the interest removal that can be taken. The bill proposes to expand the inbound thin capitalization rules to cover non-residents acting together when investing in New Zealand.
The bill also includes measures to deal with the misrepresentation arises from the current black hole treatment of certain items of expenditure. Businesses will no longer need to register a patent or resource approves application before they can receive a subtraction from the expenditure incurred on terminated or unproductive application.
