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09:58
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Originally posted by joewolf:
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NZ tax laws are fairly complex but from my research they have a few unique points. Firstly we were looking at owning NZ shares firtly and as it would be a company it would be NZ domiciled so would get the franking credits from NZ companies. We would own assets that were growth where little or no dividends are paid plus it would own international shares. They do have a complicated notional dividend process for USA but it didnt make that much of a difference. So if you owned Afterpay and it went from $12 to $26 you would not have CGT on the sale. No dividends so no implications in regard to franking credits. The disincentive in OZ is that you tend to hold onto APT as you would not be able to repurchase the same amount after cgt once sold. The NZ company would not pay dividends so in effect you would not have taxable income in OZ.
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Thanks Joe, that makes sense. I'm not resident in Australia, so my interest in this question is more for interest than personal application. I'm curious why Australian capital doesn't appear to be finding its way into the market via NZ. From what you say, there's some reasonably broad brush stuff in AU preventing you from doing that if the main goal is to avoid AU CGT.
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