Question 9b

Pacific Island Tourist Hotel Development Limited, a New Zealand resident company, is paying a fully imputed cash dividend to its shareholder on 30 September 2023. The Finance Director provides you with the following list of proposed dividends:

Note: The cash amount of the dividend is the amount of the dividend before that attachment of imputation credits and before deduction of any tax. None of the shareholders has a voting interest of 10% or more in the company.

Task

Explain the type and amount of tax to deduct from these dividend payments. Provide relevant statutory references and refer to any relevant Double Tax Agreement in relation to the Fijian and Tongan shareholders.

\begin{tabular}{|l|r|r|} \hline Shareholderscountryoftaxresidence & Cashamountofdividend & Imputationcreditsattached \\ \hline New Zealand & $19,137.60 & $7,442.40 \\ \hline Fiji & $7,587.00 & $2.950.50 \\ \hline Tonga & $9,470.00 & $3,682.78 \\ \hline \end{tabular}