New Zealand Court of Appeal Overturns Earlier High Court Decision that Resident May Claim Tax Sparing Credit for China CFC

A judgment of the New Zealand Court of Appeal has been published that overturns a 2017 decision of the High Court that a resident of New Zealand may claim a tax sparing credit in respect of tax concessions granted in China to that resident's controlled foreign corporations (CFCs). In the decision of the High Court, it was found that the resident's claim was valid based primarily on its interpretation of the phrase "in respect of" in relation to the provision under Article 23(2)(a) of the 198…