different definitions is that when the definition of person” was first created for the “offshore purposes of land information requirements it was not envisaged that it would also be used in the context of a withholding tax. Officials agree that use of the same term could create confusion and if the definition is different to that used for land information purposes, a different term should be used. Recommendation That the submission be accepted, and the matter referred to drafters. Clause 45 Issue: Non-individuals use of the terms and – “member” “executive” Submissions (Chapman Tripp, Chartered Accountants Australia and New Zealand, New Zealand Law Society) and should be defined. They are not technical and it is not “Member” “executive” appropriate to use non-technical terms in this context. (Chartered Accountants Australia and New Zealand) The use of the term is unusual in the New Zealand context and it is not clear what “executive” persons are intended to be captured by the term. The term person” should be used “authorised instead. (Chapman Tripp) It should be clarified whether the concept of a applies in the context of a company “member” and if it includes a shareholder. It is assumed, but should be clarified, that does not “member” include a shareholder, executive or director, given clause (c)(v) and (vi) of the proposed definition. (New Zealand Law Society) Comment The term was intended to capture partners in a partnership and other similar “member” arrangements. It is not intended to capture a shareholder, executive or director of a company. Officials agree that the legislation should be amended to clarify this. The term was intended to capture persons who held a similar role to directors. “executives” This should be clarified in the legislation. Recommendation That the submissions be accepted, subject to officials’ comments.
different definitions is that when the definition of “offshore person” was first created for the purposes of land information requirements it was not envisaged that it would also be used in the context of a withholding tax. Officials agree that use of the same term could create confusion and if the definition is different to that used for land information purposes, a different term should be used. Recommendation That the submission be accepted, and the matter referred to drafters. Clause 45 Issue: Non-individuals – use of the terms “member” and “executive” Submissions (Chapman Tripp, Chartered Accountants Australia and New Zealand, New Zealand Law Society) “Member” and “executive” should be defined. They are not technical and it is not appropriate to use non-technical terms in this context. (Chartered Accountants Australia and New Zealand) The use of the term “executive” is unusual in the New Zealand context and it is not clear what persons are intended to be captured by the term. The term “authorised person” should be used instead. (Chapman Tripp) It should be clarified whether the concept of a “member” applies in the context of a company and if it includes a shareholder. It is assumed, but should be clarified, that “member” does not include a shareholder, executive or director, given clause (c)(v) and (vi) of the proposed definition. (New Zealand Law Society) Comment The term “member” was intended to capture partners in a partnership and other similar arrangements. It is not intended to capture a shareholder, executive or director of a company. Officials agree that the legislation should be amended to clarify this. The term “executives” was intended to capture persons who held a similar role to directors. This should be clarified in the legislation. Recommendation That the submissions be accepted, subject to officials’ comments.