Andrew Little
Leader of the Opposition

MEDIA STATEMENT

13 April 2016

Key’s judgement in doubt on tax haven appointment

John Key’s decision to appoint John Shewan to review New Zealand’s dodgy foreign trust rules shows a serious lack of judgement given he sent Mr Shewan to the Bahamas just two years ago where he advised on tax changes that protected the offshore financial industry, says Opposition Leader Andrew Little.

“Two years ago John Key reached an agreement with Bahamas Prime Minister Perry Christie to send John Shewan and former ACT and National Leader Don Brash to the renowned tax haven to advise on instituting a value added tax.

“In the course of that report, Mr Shewan and Dr Brash advised the Bahamas Government to zero-rate financial services to ‘protect the so-called offshore industry’, according to newspaper reports.

“In effect, the two tax experts advised a tax haven on how to protect its offshore financial services industry and maintain its tax haven status.

“New Zealanders cannot have confidence in the review of our offshore trusts system when it is being led by a person who has advised tax havens. A closed door review led by Mr Shewan will not restore our international reputation which has been so damaged by the Panama Papers.

“John Key knew Mr Shewan undertook the Bahamas advice role. It is incredibly arrogant of the Prime Minister to appoint him to review our offshore trusts rules and expect New Zealanders to accept that.

“The Prime Minister is way out of touch with middle New Zealand who know foreign trusts are a method for the global mega-rich to hide their wealth and not pay their fair share.

“New Zealanders don’t want our country to be the Bahamas.

“There needs to be a full and independent public inquiry into the role of foreign trusts and tax avoidance in New Zealand,” says Andrew Little.

http://img.scoop.co.nz/media/pdfs/1604/BrashShewanReportFinal.pdf

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