Category Taxation in New Zealand

New Zealand Set to Put Pressure on Evasion

October 26, 2009 Taxation in New Zealand  No comments

The New Zealand Inland Revenue Department (IRD) and Government figures have given clear indication that the country will see increased pressure on tax evaders in 2010.

According to a submission from the IRD to the government supported Tax Working Group, released October 25th, the government is losing approximately NZ$300 million in taxation receipts annually through money hidden in trust accounts. The total tax evasion amount is only increased when companies created purely for the purpose of tax avoidance are considered. Statements by Bill English, New Zealand Finance Minister, have supported this, with claims being made by him that the government will take action in 2010 to close loopholes on those that it considers to be “tax dodgers”.

Further, the IRD report stated that since the in...

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ASB Could Settle in IRD’s Tax Hunt

October 19, 2009 Taxation in New Zealand  No comments

New Zealand’s ASB bank has given indicators that it may settle with the Inland Revenue Department (IRD) in their structured financing tax evasion case against the bank.

Warwick Bryan, Investor Relations Analyst for the Commonwealth Bank of Australia (CBA), made indications that ASB Bank might opt for an out of court settlement with the IRD, who is pursuing the bank for allegedly evaded tax liabilities.

While commenting on Westpac Bank’s loss of a similar case against the IRD, Warrick Bryan said that there had not been a court hearing date set for ASB. Further, he claimed that the bank might not receive a date in the current fiscal year, and went on to say “But then it may never go to court and it may be settled in some way”.

At the same conference, it was revealed that ASB expects its to...

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New Zealand Bank Guilty of Serious Tax Evasion

October 12, 2009 Offshore BankingOffshore TaxationTaxation in New Zealand  No comments

The New Zealand branch of Westpac Banking Corp has been found guilty by the New Zealand High Court of tax evasion, the legal action concerns a total of NZD918 million.

Court proceedings revolved around adjustments made to returns filed by Westpac in which a number of transactions were claimed and used to reduce the overall tax liability. The IRD contested that these were carried out purely with the purpose of tax evasion and subsequently assessed the bank’s tax liability higher. The tax figure dispute consists of NZD586 million base and a further NZD332 charged as interest.

The assessment revolved around nine international structured financing transactions which took place between 1998 and 2002...

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Capital Gains Tax Unlikely in New Zealand

September 15, 2009 Taxation in New Zealand  No comments

Comments made by the New Zealand Prime Minister has effectively put an end to discussion surrounding the introduction of a Capital Gains Tax in New Zealand.

In a statement made on the 14th of September, John Key, New Zealand Prime Minister, cast serious doubt on the idea of introducing a capital gains tax in New Zealand. The Prime Minister had previously been hesitant to rule out a capital gains tax, so as not to limit the process of the Tax Working Group. Yet now that the working group is open in their discussion of the matter, the head of government has stated that he would require “an awful lot of convincing” on the matter and would want “meteoric evidence” supporting it.

The Capital Gains Tax discussion has centered around the sale of property and housing...

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Tax Information Exchange Agreement Update

September 10, 2009 International Tax CooperationOffshore BankingTax HavensTaxation in AustraliaTaxation in British Virgin IslandsTaxation in CanadaTaxation in Cayman IslandsTaxation in EUTaxation in FranceTaxation in GermanyTaxation in IrelandTaxation in LiechtensteinTaxation in MonacoTaxation in New ZealandTaxation in Turks & Caicos IslandsTaxation in UKTaxation in USA  No comments

Since the April G20 summit, over 50 new TIEA agreements have been signed across the globe.

The London G20 Summit, held on the 2nd of April this year, heralded an unprecedented wave of Tax Information Exchange Agreement (TIEA). In what was described as “revolutionary” by Angel Gurría, OECD Secretary-General, the number of completed TIEAs has almost doubled since their inception in late 2000.
Since the G20 summit, and subsequent global push for greater tax transparency and compliance, the following 53 agreements have been signed.

United States – Monaco (8 September 2009)
Denmark – Turks & Caicos Islands (7 September 2009)
Netherlands – Antigua & Barbuda (2 September 2009)
Denmark – Gibraltar (2 September 2009)
Denmark – Anguilla (2 September 2009)
Germany – Liechtenstein (2 September ...

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