Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Dunne: new agreement makes mockery of tax haven claims

Hon Peter Dunne
Minister of Revenue


Monday 8 October 2012 Media Statement

Dunne: new agreement makes mockery of tax haven claims

Revenue Minister Peter Dunne today announced that New Zealand will be signing a multilateral convention on tax assistance later this month, as he dismissed claims that New Zealand is a tax haven for foreign trusts.

“The key identifying characteristics of tax havens are secrecy and lack of transparency. Those are simply not factors here in New Zealand.

“In fact, New Zealand’s foreign trust taxation rules and treaty exchange of information arrangements and practices were scrutinised in detail last year by the Global Forum on Transparency and Exchange of Information for Tax Purposes review and they were approved,” Mr Dunne said.

“Our legislation for taxing trusts is fully transparent. The rules were in fact introduced in the 1980s to prevent tax avoidance by New Zealand residents.

“They are also consistent with the wider international norm that a country should not tax non-residents on foreign-sourced income – in short, we don’t tax non-New Zealanders on income not earned in New Zealand,” Mr Dunne said.

However, New Zealand’s tax legislation contains effective disclosure and record-keeping requirements that ensure Inland Revenue can access full details of the trust and provide that information to tax treaty partners as required.

New Zealand will sign the Convention on Mutual Administration Assistance in Tax Matters, as amended by the 2010 Protocol, which is a multilateral treaty that opened for signature in 1988.

Formulated jointly by the OECD and the Council of Europe, the Convention will give Inland Revenue the ability to request help from other tax authorities in detecting and preventing tax evasion, and collecting outstanding tax debts from absconding taxpayers.

“This is an important step and consistent with New Zealand’s approach to tax matters, and frankly, makes a mockery of tax haven assertions,” Mr Dunne said.

New Zealand has a wide network of tax treaty partners, including 37 double tax agreements and a growing network of tax information exchange agreements.

“The Government does not want to tax people more than what is prescribed under current law, but will act firmly where tax evasion is suspected.

“Deliberately artificial tax structures designed with the purpose of defeating New Zealand’s tax laws will attract Inland Revenue’s scrutiny,” he said.


Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014.

During his visit, President Xi Jinping met with Governor-General Jerry Mateparae, and held talks with Prime Minister John Key. The leaders had an in-depth exchange of views on bilateral relations as well as regional and international issues of common interest. More>>

 
 

Parliament Today:

Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

China President Wishlists: Greens Welcome Xi, But Human Rights Need To Be On Agenda

“President Xi has made some progress on climate change, but he must also lift the Chinese government’s game on human rights issues,” Green Party Co-leader Dr Russel Norman said... It is important that our Government continues to urge the Chinese government to show restraint and respect human rights in both Tibet and the Xinjiang province.” More>>

ALSO:

Airport Security Breach: CAA Fines Minister

Minister Brownlee has been issued an infringement notice and is required to pay a $2000 infringement fine for breaching Civil Aviation Rule 19.357(b), which states no person may be in an airport security area without an appropriate identity card or document. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news