The government has kicked for touch over whether to close a profit-shifting tax loophole, delaying a decision on whether to follow international guidelines and limit how much interest payments can be used to write off taxes.
Revenue Minister Michael Woodhouse said through a spokesperson that long-mulled recommendations from the OECD that member states should cap tax deductions on interest paid to a maximum of 30 per cent of ebitda would not be implemented this year.
"In line with the tax policy process, the Government intends to release a discussion document early next year on proposed changes to our interest limitation rules," Woodhouse said.
The government has long expressed a desire to tackle multinational tax avoidance through multilateral channels instead of going it alone and the OECD recommendation is one of 15 steps on an "action plan" agreed internationally in 2015.
Documents obtained under the Official Information Act suggest the policy - its introduction this year was described in March briefings to the Revenue Minister as a "likely development" - was initially intended to be announced this month.