Contents

Chapter 1 – Introduction

Chapter 2 – Policy framework

   Introduction
   Background
       Ways of earning income
   Analysis
       Taxes on Non-residents
       Taxes on residents
   Taxation of residents in practice
       The CFC regime
       The FIF regime
   Directions for reform

Chapter 3 – Taxation of non-residents

   Taxes on debt supplied by non-residents
       Reforms
   Taxation of equity supplied by non-residents

Chapter 4 – Taxation of residents’ foreign-source income

   Taxing income earned through foreign companies
   Taxation of foreign-source income
   Controlled Foreign Company (CFC) regime
       Purpose and description
       Some options for change
   Foreign Investment Fund (FIF) regime
       Purpose and description
       FIF regimes in other countries
       Problems with the current FIF regime
       Some options for change
   Foreign Dividend Withholding Payment (FDWP) regime

Chapter 5 – Bilateral Action

   The role of bilateral tax agreements
       Defining the international tax base
       Reducing undesirable double taxation
       Dealing with international tax problems
   Implications for policy making and treaty negotiation
   Effect of DTAs
   DTA policy
       Review of existing DTAs
       Criteria for assessing DTAs
       International relations considerations
       Conclusion
   Australia
       Mechanisms for reform

Annex – The practical effect of DTAs on tax paid by New Zealand exporters

   Introduction
   Cases compared
   Exporting goods to a foreign firm in Country X
   Setting up a storage warehouse in Country X
   Setting up retail shop in Country X
   Incorporating the shops trading in Country X
   Implications for policy making and treaty negotiation