Tax Consequences Of Dissolving Raspberry Marketing Organisations Clarified

A bill introduced into Parliament today clarifies the tax consequences of the forthcoming dissolution of the New Zealand Raspberry Marketing Council, its committees and the Raspberry Marketing Export Authority.

"The legislative amendments contained in the Taxation (Annual Rates and Remedial Matters) Bill will provide greater certainty for those involved in the dissolution," said Revenue Minister Bill English.

"The main tax area that has needed clarification is the tax treatment of distributions by the marketing organisations to their members on dissolution. These distributions will be treated in the same way as a distribution from a company to its shareholders on winding up.

"This should alleviate concerns about the tax-side of the dissolution," he said.