Full Imputation, Report of the Consultative Committee

New Zealand employs a full imputation system for company taxation. That is, to avoid double taxation of corporate profits companies may impute, or pass on proportionately to their shareholders, the benefit of all tax paid at company level. The present document is the report of the Consultative Committee on the imputation proposals outlined in an earlier Government Consultative Document on Full Imputation. The recommendations concern the mechanics of the imputation scheme rather than fundamental design issues. The report includes recommendations on the integration of the imputation, branch-equivalent and withholding payment regimes. The interrelationship between these three schemes is the main area of the overlap between the imputation and international tax reforms.