Forum Archive Index - January 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

Actually Suren, you're not quite right in this particular case. The Brierley situation is because the company is now becoming a non resident in what is known, in terms of NZ's taxation legislation, a non 'grey list' country, ie, Singapore. If an investor owns more than $20,000 worth of shares in non grey list countries, then they invoke the provisions of NZ's 'Foreign Investment Fund' regime. Under the FIF regime, there are from memory actually four ways of calculating a single NZ investors taxable income, which effectively end up taxing that investor on any realised or unrealised capital gains earned from those non resident companies, regardless of whether they are classed as a share trader here or not.