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Sponsor New Zealand, Not Niue, As A Tax Haven

Sponsor New Zealand, Not Niue, As A Tax Haven

ACT New Zealand Associate Commerce Spokesman Stephen Franks today advised Labour to determine just how much Niue's tax haven status draws from New Zealand before spending as much as $30 million to restore the living standards of 2,000 Niueans.

"ACT would like to see all New Zealanders taxed as lightly as Niueans. Niue's maximum tax of $US150 for international business corporations would be a huge boost to businesses in New Zealand," Mr Franks said.

"But, as a tax haven, Nuie has been a thorn in New Zealand's side and the OECD for years. Last year, under heavy pressure, Niue agreed to cooperate with the OECD and New Zealand, in order to reduce tax fraud.

"The Labour Ministers, who have so quickly assured Niueans that all New Zealand Government departments will cooperate to help them, should now tell New Zealanders two things:

"First, whether that means the Inland Revenue Department has been instructed to now `cooperate' with the Niue tax evasion industry and, secondly, whether they will insist on the Niuean Government ceasing to shelter New Zealand tax dodgers as a quid pro quo.

"Charity does not necessarily begin at home, but New Zealand taxpayers might expect that Niue will at least agree that a charity beneficiary does not poke lady bountiful in the eye," Mr Franks said.

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