A recently issued press release describes New Zealand as a tax haven. However, based on features of a tax haven, New Zealand does not qualify as one. The media coverage purports that New Zealand is somehow a tax haven due to its sophisticated banking sector and wealthy people. The 2002 OECD Tax Model maintains that New Zealand is not a tax haven because its banking sector is highly transparent and does not impose nominal taxes. Furthermore, its tax model allows the exchange of information across countries.
Upon the approval of the 2002 OECD Tax Model, the international sharing of information across countries to enforce domestic laws is enhanced. New Zealand ranked first on OECD’s list of the countries that subscribes to the principles embodied in the internationally agreed tax standard.
In a move to strengthen New Zealand’s tax transparency model, Michael Cullen introduced new tax rules. Under the new regime, trustees of a foreign trust must subject to the IRD and submit the IR607 form. They should also maintain records of their financial transactions including their trust deed, the value of the assets and liabilities, records of trust settlement, and the amount of money spent and received by the trustee. New Zealand’s authority requires all documents to be written in English, failure to which attracts hefty penalties.
About Cone Marshall
Cone Marshall is New Zealand’s leadingt global-scale firm specializing in trust and tax laws. With its headquarters located in Auckland, Cone Marshall was founded in 1999 by Marshall and Cone. Before founding Cone Marshall, Karen worked as London’s Commercial Litigation department advisor for almost ten years. Besides, Karen Marshall leverages her extensive expertise in trusts management to advise statutory trustee companies in the U.K. Conversely, as one of the Best Tax Lawyers in New Zealand, Geoffrey Cone is an expert in global-scale trusts and tax planning.
Even as claims that New Zealand is a tax haven surfaces, Mr. Cone discredits the notion stating that New Zealand is a subscriber to the principles of the approved tax model. Mr. Cone attributes the recent increase in New Zealand’s foreign trusts to the country’s stature as a secure, politically stable place to base one’s assets. Even as New Zealand experiences increase in foreign trusts, Cone Marshall commits to strengthening the country’s tax transparency model. Cone Marshall’s legal experts adhere to the principles of transparency in trusts and taxation and provide reliable and affordable advice regarding the global taxation standards.Categories: Legal Experts