12 May 2017
LIN v THE COMMISSIONER OF INLAND REVENUE [2017] NZHC 969
- Citation
- [2017] NZCCLR 24
- Court
- High Court
Article 23(2)(a) of the China–New Zealand DTA includes Chinese tax paid by a Chinese CFC as "Chinese tax paid in respect of income derived by a resident of New Zealand", and Article 23(3) tax sparing applies to tax spared to the CFC; accordingly the New Zealand resident is entitled to credits for both tax paid and tax spared to the CFC and New Zealand domestic law must be read and applied to give effect to those treaty entitlements; the Commissioner's assessments for the years in dispute are incorrect to the extent affected.