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

Gordon Campbell:
On Tomorrow’s Speeches By John Key And
Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the Resource Management Act.

Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing, which happens to be another of the government’s most contentious, most ideologically-driven policy packages. Presumably, Key will be trying not to double down on the rhetoric, and thereby leave room for Labour leader Andrew Little to sound like the centrist voice of reason.

Key will have his work cut out, though. More>>

 

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads. This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD. More>>

ALSO:

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Gordon Campbell: On The Similarities Between John Key And David Cameron

For years now, David Cameron has been the closest available thing to a mentor/analogue to our Prime Minister, such that Key watchers could be interested in an analysis of Cameron that appeared in the British press over the Christmas break. More>>

Gordon Campbell: On Ian Fletcher Resignation & GCSB’s New Role

It may well be that after being shoulder-tapped in Queensland for the GCSB job, three years of living in Wellington has been enough for Fletcher and his family, given that the pending review of the GCSB would have required an even longer commitment from him. Three years of Wellington’s weather is enough for anyone... More>>

ALSO:

Ian Apperley: $10m Or $100m For New Wellington Council IT System?

I feel a Tui Billboard coming on. I commented the other day that it looked like the Council’s Ninth big project was a potential $100 million plus... The Mayor has responded: “I am reassured by the Chief Executive and by Anthony Wilson that the proposed budget is in the region of $10 million.” More>>

ALSO:

Southern Ocean:
Navy Intercepts Illegal Fishing Vessels

Foreign Minister Murray McCully today put illegal fishing vessels operating in the Southern Ocean on notice and vowed to take action against their owners. “As part of a multi-agency operation, the HMNZS WELLINGTON has intercepted two vessels claiming to be flagged to Equatorial Guinea, fishing illegally in the Southern Ocean.” Mr McCully says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news