29 October 2014
NZ to join global crackdown on tax evasion
Revenue Minister Todd McClay today announced New Zealand’s timetable for participation in a global automatic exchange of information aimed at cracking down on tax evasion.
G20 leaders announced the initiative in September 2013 - and in May 2014, New Zealand, along with all OECD countries, joined in the general declaration of support for the move. Australia, holding the G20 Presidency this year, announced their implementation timetable last month.
“Multinational companies that use base erosion and profit shifting (BEPS) measures to avoid tax is a global problem – and we are committing to joining other OECD countries in finding a global solution.
“New Zealand intends to align its timetable with Australia’s and begin exchanging information on a voluntary basis from 2018, aiming for mandatory reporting in 2019. This will give New Zealand’s financial industry enough time to comply with the initiative”, says Mr McClay
“The automatic exchange of information initiative will set a global standard for sharing information. It will operate much like the recently introduced US Foreign Account Tax Compliance Act where financial institutions will provide information on account holders’ financial assets to their local tax authority.”
Mr McClay says New Zealand is firmly supportive of this global move to counter evasion.
“Tax evasion respects no borders so global co-operation is the way to combat it. Sharing information is a powerful weapon in that fight”.
Media contact: Lesley Hamilton 027 490 1345