More time for consultation on tax changes for NZ-based foreign trusts

The Government is to consult further with the foreign trust industry before proceeding with legislative changes that will impose new information requirements on foreign trusts set up in New Zealand, Revenue Minister Michael Cullen announced today.

“Amending legislation is now planned for introduction next year, to allow adequate time for policy development,” Dr Cullen said.

The Government announced in July that it would introduce legislation in November requiring foreign trusts set up in New Zealand to provide certain information to New Zealand tax authorities. This is designed to ensure New Zealand meets international commitments to the full disclosure of information with other tax jurisdictions.

However, as a result of submissions received following the July announcement Dr Cullen said it was clear more time for policy development was necessary.

“It is important that the new legislation strikes the right balance between enabling New Zealand to meet its international commitments to exchange tax information, and having information requirements that are appropriate to and workable for the many foreign trusts based here,” Dr Cullen said.

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