Withholding tax and inflation-indexed bonds

Submission

(Corporate Taxpayers Group)

We generally support the proposals in the bill to deal with technical issues in relation to the application of the RWT and NRWT rules to inflation-indexed instruments. However the Government should consider how workable rules could be introduced in other areas where there is a mismatch between income arising and cash flows.

Comment

Officials note that this submission raises an issue that would require further analysis and needs to be prioritised against other work on the Government’s tax policy work programme. Officials propose to discuss the priority of this work with the submitter.

Recommendation

That the submission be noted.