NZ Funds says not us
New Zealand Funds Management has moved to reassure investors it is not affected by the Australian tax authorities’ crackdown on unit trusts in that country.
Thursday, August 11th 2005, 6:19AM
by Rob Hosking
As Good Returns reported on Tuesday, ING New Zealand is involved in a stoush across the Tasman after the Australian Tax Office issued an “interpretive” ruling that income in unit trusts which is rolled up into capital is subject to income tax of 48.5%.
ING is, along with other Australian fund managers, fighting the ruling.
New Zealand Funds Management – which is not making any public comment – nonetheless sent a letter to investors and advisers on the issue.
NZ Funds says it has a different approach to that of ING and some other investors in Australian unit trusts. NZ Funds distributes income from the trusts to investors, rather than roll it up.
“Based on our current distribution policy, the application of this Interpretative Decision will have no practical impact on investors in either the Income or Growth Strategies.”
“While this new taxation policy is likely to receive some publicity in the industry media over the next few days, it was aimed at a particular situation we have carefully kept well clear of – an Australian unit trust investing through a tax haven and rolling all income into the price of the trust.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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