@nzzp said in NZR review:
@Godder thanks for that.
If the PU still 'own' the pro game, but appoint a board to run as an independent business, do they still pay tax? Surely the transfer of a surplus to the parent body doesn't attract the liability as the parent body is tax-exempt.
I'm not an accountant, so terminology may be totally wrong.
If it's a separate for-profit entity, the surplus would be taxable. Imputation credits on the dividends would be refunded after filing a tax return, but to avoid all tax, the entity would not be able to retain any amount from the surplus. Possibly there are other options around licensing and/or management fees but that's a good way to attract IRD's attention for an avoidance arrangement.
Appointing a separate arms-length board to run the professional game within the NZRU is fine.