Inland Revenue says it has become aware of an error in the Taxation (Neutralising Base Erosion and Profit Shifting) Bill.

The bill is currently being considered by the Finance and Expenditure Committee.

Wording in the bill means that the interest deduction limitation rule applying to cross-border related party loans is not applied as widely as it should.

A note issued by Inland Revenue explains the issue and the solution officials intend to recommend to the Finance and Expenditure Committee. Submissions can be made to the select committee by 2 March.