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Australia to collect New Zealand tax debt

Media statement
For immediate release
Thursday, 18 September 2008

Australia to collect New Zealand tax debt

New Zealand and Australian taxation authorities will help each other collect tax debt, Revenue Minister Peter Dunne announced today.

The Assistance in Collection of Taxes Article in New Zealand’s tax treaty with Australia came into effect on 8 September.

Added to the Treaty by the 2005 amending protocol, the Article was designed to come into full effect after both countries had put in place supporting domestic arrangements.

“This Article allows Inland Revenue to transfer tax debt cases to the Australian Taxation Office for collection, and vice versa,’’ said Mr Dunne.

“It will strengthen New Zealand’s ability to collect outstanding tax from people who have left the country.’’

He said the initiative reinforced the strong commitment the governments of New Zealand and Australia have to strengthening cooperation in the enforcement of tax laws and the collection of tax.

“The entry into effect of this Article, along with the current general renegotiations of other provisions in the treaty, will further enhance economic links between the two countries.”


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