The Taxation (Annual Rates, Foreign Superannuation and Remedial Matters) Bill (the “Bill”) has been reported back by the Finance and Expenditure Committee (“FEC”) considering submissions on the Bill.
The Bill changes the way foreign superannuation scheme interests will be taxed. Under the new rules, these will be taxed only on withdrawal. The FEC has recommended a number of changes, including extending the amnesty for past non-compliance to a wider range of foreign superannuation schemes. This is a welcome clarification.
In response to Officials’ concerns, the FEC has also recommended the new rules not apply to foreign superannuation schemes acquired while a person was New Zealand resident. We have serious concerns with this restriction and we do not believe that Officials have fully considered the consequences. Taxmail discusses this and other changes in the reported-back Bill.