Australia to collect New Zealand tax debt

Arrangements are now in place to allow New Zealand and Australia to help each other collect tax debts, Revenue Minister Peter Dunne announced today. The arrangements form part of New Zealand's tax treaty with Australia and came into effect on 8 September 2008. They improve New Zealand’s ability to collect outstanding tax from people who have left the country and reinforce cooperation between Australia and New Zealand in the enforcement of tax laws and the collection of tax, Mr Dunne said. For more information see the media statement and the text of the treaty.

Hon Peter Dunne
MP for Ohariu Belmont
Minister of Revenue
Associate Minister of Health

MEDIA STATEMENT

Australia to collect New Zealand tax debt

New Zealand and Australian taxation authorities will help each other collect tax debt, Revenue Minister Peter Dunne announced today.

The Assistance in Collection of Taxes Article in New Zealand's tax treaty with Australia came into effect on 8 September.

Added to the Treaty by the 2005 amending protocol, the Article was designed to come into full effect after both countries had put in place supporting domestic arrangements.

"This Article allows Inland Revenue to transfer tax debt cases to the Australian Taxation Office for collection, and vice versa," said Mr Dunne.

"It will strengthen New Zealand's ability to collect outstanding tax from people who have left the country."

He said the initiative reinforced the strong commitment the governments of New Zealand and Australia have to strengthening cooperation in the enforcement of tax laws and the collection of tax.

"The entry into effect of this Article, along with the current general renegotiations of other provisions in the treaty, will further enhance economic links between the two countries."

Contact:
Ted Sheehan, Press secretary to Mr Dunne, 021 638 920