8. AARON GILMORE (National) Link to this
to the Minister of Revenue
What recent international tax agreements has New Zealand entered into and what are the reasons for becoming signatories to these agreements?
Hon PETER DUNNE (Minister of Revenue) Link to this
New Zealand has recently signed two new tax agreements. Last December we signed a protocol to substantially amend our double tax agreement with the United States of America, and in June we signed a completely new double tax agreement with Australia. Both of these agreements represent a definite improvement over our existing treaties with those countries. They reduce tax barriers to investment by reducing withholding rates on dividends, interest, and royalties. They also bring our treaty arrangements up to date with modern treaty practice, provide greater certainty for taxpayers, and improve cooperation between tax authorities in the respective countries.
What further tax agreements has New Zealand entered into that provide more transparency around financial transactions and help combat tax evasion?
In addition to the double tax agreements, we have concluded a number of what are called Tax Information Exchange Agreements with key tax havens and other low-tax international finance centres. These include Bermuda; the Cook Islands, whose agreement the Prime Minister signed recently; Guernsey, whose agreement I signed recently; the Isle of Man; Jersey; and Netherlands Antilles. Agreements with the British Virgin Islands, the Cayman Islands, and Gibraltar will be signed next week. These Tax Information Exchange Agreements extend the ability of the Inland Revenue Department to request offshore tax records, business books and accounts, bank information, ownership information, and other tax-related information for the purpose of detecting and preventing tax avoidance and evasion by New Zealand residents.