The Resource Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia

Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia

Label
Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia
Title
Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia
Creator
Subject
Language
eng
Summary
This article explores existing gaps in the taxation of directors' fees received by non-residents for services performed outside New Zealand. It examines New Zealand legislation, and leading cases in New Zealand and other jurisdictions concerning the source of receipts for personal services, and suggests some conclusions by which these fees may be considered taxable income in New Zealand. To determine the legal criteria that identify the source of directors' fees, the article analyses Article 16 of OECD Model Tax Convention 2004, Inland Revenue's historic technical ruling, ss BD1 (Scope of New Zealand Tax), BE 1 (Withholding liabilities) and YD 4 (Source rules) of the Income Tax Act 2007. In the absence of a clear statutory provision on the basis of case law in the Income Tax Act 2007, this article attempts to explain underlying principles by which such fees received may be taxed within the broader context of the Income Tax Act 2007. The article demonstrates that, as evidenced by case law, interpretation of s YD 4 is based on the judicial concept of "derived". In the absence of a clear statutory test the article aims to establish a guide for policymakers to ensure that unfairness caused by these gaps does not ultimately undermine the tax system, and at the same time protects the revenue base, specifically when dealing with countries with which New Zealand has no double tax agreement
Citation source
In: Australian tax review. - Pyrmont. - Vol. 46 (2017), no. 1 ; p. 5-25
http://library.link/vocab/creatorName
Gupta, R. (Ranjana)
Language note
English
http://library.link/vocab/subjectName
  • OECD Model
  • directors' fees
  • non-resident
  • case law
  • tax treaty
  • source of income
Label
Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia
Instantiates
Publication
Label
Directors' fees received by non-residents for services performed outside New Zealand : lessons from Australia
Publication

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