New Zealand Inland Revenue has published an officials' issues paper for consultation on Thin capitalisation settings for infrastructure, seeking feedback on whether New Zealand's thin capitalisation settings might be discouraging foreign investors from investing in infrastructure projects in New Zealand. The issues paper considers two possible solutions to address the potential issue: A targeted rule that applies only to infrastructure projects; and A more general rule that applies to third-party debt. Targeted Rule A targeted thin capitalisation rule for infrastructure could draw on elements of the specific rule for public private partnership (PPP) infrastructure projects to allow an entity that...