Understanding Dividend Stripping Rules and Risk Management.
Restructuring groups is a common practice as businesses evolve over time.
The restructure may inadvertently result in the application of the dividend stripping rules. The impact of these rules can result in taxpayers being double taxed on the same income.
These rules can apply beyond large groups restructuring, and in recent years, the IRD has been active in pursuing taxpayers where they insert a holding company, restructure ownership, or pay out large dividends from privately-held companies.
Consequently, it is critical to consider the potential implications of these rules prior to the sale/transfer of shares, whether to an associated person or a third party.
Suited to:
Accountants, lawyers, and business advisors at the manager/senior level.
TEO Training provides practical learning experiences on primarily tax-related topics for accountants, lawyers and business advisors across New Zealand.
Senior Partner, Findex/Crowe
Jarod is a senior partner in the Otago Tax Team for Findex/Crowe and has been a regular presenter for TEO, presenting on a wide range of topics in all areas of tax. Jarod’s background includes working in 'Big 4' firms in Australia and New Zealand in the tax domain, and working as a management accountant for large corporates. Jarod is recognized as an industry leader in the area of foreign investment and regularly assists other accountants/advisors with their clients. He provides commercial, practical advice in all areas of tax.
