Hon Michael Woodhouse
Minister of Revenue

9 May 2016

NZ tax rules open and transparent

The Government remains committed to tackling tax evasion and avoidance by ensuring that our tax rules are open and transparent, Revenue Minister Michael Woodhouse says.

“New Zealand has an extensive network of tax treaties and information exchange agreements, which are at the heart of a transparent tax system,” Mr Woodhouse says.

“As of today New Zealand has signed such agreements with around 100 countries, including Latin American countries. This helps New Zealand and other tax authorities detect tax avoidance and evasion.

“As a result of the various agreements, New Zealand can exchange information with the likes of Mexico, Argentina and Colombia.

“Further to this, New Zealand has complied with every information request from its treaty partners to the standard required by the OECD and was recently given the highest rating for compliance, which again shows the transparency of our system and is indicative of why we are not a tax haven.

“The Government agrees that it is important that everyone pays their fair share of tax. That is why we have invested more than $205 million since Budget 2012 for the IRD to beef up its compliance work.

“In addition, over the last several years we’ve been steadily strengthening our tax rules and working with the OECD on further amendments we could make to improve our tax rules.

“Calls by some opposition MPs to ban foreign trusts is clearly misguided and lacks understanding of how they’re constructed.

“A blanket ban could have unintended consequences and lead to banning other vehicles that operate under the same principle.

“The real issue is around disclosure which is why we have appointed John Shewan to undertake an independent review of disclosure rules covering foreign trusts registered in New Zealand.

“We will wait and see what comes from that Review, but the Government is open to changes that Mr Shewan may recommend around disclosure rule of foreign trusts.”

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