The Media has recently Exposed New Zealand as a Tax Haven
Most people perceive New Zealand as an exotic land involving complex financial deals and with rich people. Current media exposure has portrayed New Zealand as a place with mysterious business transactions. The truth positions New Zealand as a normal tax country. Most people have considered New Zealand as a tax haven. Lawyer Cone points out that the country has full tax transparency. He says that the state does not hide any information exchange with other world administrations. He adds that the state does not impose nominal taxes. Lawyer Cone says that the country does not have any secretive private banking industry. He further suggests the list of tax haven countries.
New Zealand has embraced tax transparency Models
Geoffrey Cone says that New Zealand was the first country to adopt the OECD Model Agreement on Exchange of Tax Information. He says that New Zealand was among the first countries to have implemented this substantial approved international tax standard. One of the methods in which New Zealand has confirmed tax transparency is through its exceptional handling of foreign trusts. New Zealand makes sure that all foreign trusts businesses comply with all the trustee requirements and they avail the relevant information requested by the government.
The New Zealand Government has put in place stringent measures to curtail tax evasion
The government will request a resident trustee to present an IR607 form (Foreign Trust Disclosure form) before any foreign trustee is established under the current New Zealand regime. The government will also maintain the foreign company’s financial records for tax purposes. The government will also request for recipients address, name, distributions and settlements details, trust deed, and the trustee expenditure. The foreign company must also avail liabilities and assets as well as account and accounting system information. Every record of this information is recorded in English and maintained in New Zealand. Serious penalties are imposed if the instructions are not followed. This authority is further enhanced through the 2011 standard world money laundering legislation policy.
New Zealand has also established numerous tax agreements that are planned to reduce tax barriers to cross-border investments and trade. These tariff harmonies are meant to prevent tax evasion and avoidance. New Zealand has numerous tax detail exchange agreements with many countries across the globe. These agreements are partial double tax agreements structures concerned with helping tax evasion and avoidance. New Zealand signed the bilateral Agreement for Tax Mutual Administrative Assistance.