TAX AND CORPORATE NEWS
Latest news and information about tax and corporate legislations in New Zealand
Why New Zealand is Not a Tax Haven
The international business environment is undergoing a fundamental change, asmultinational corporations and entrepreneurs abandon traditional tax haven jurisdictionsand move their business to stable onshore countries. The shift in attitudes coincides witha greater push by governments, tax authorities, and international organizations toenforce stricter transparency rules and stringent reporting laws.
New Zealand is situated in an attractive niche in the international business market,attracting investments through a wide set beneficial regulations for multinationalentrepreneurs and businesses, while being a stable developed country with a strictadherence to international standards of transparency and filing requirements, and worldleading infrastructures for doing business.The Organization of Economic Cooperation and Development has set out conditions whichwill help determine whether a jurisdiction could be considered a tax haven, which currentlyconsist of these four main points:
Whether the jurisdiction imposes no taxes or only nominal rates of taxes.
Whether there is a lack of transparency.
Whether there are laws or administrative practices that prevent the effectiveexchange of information for tax purposes with other governments on taxpayersbenefiting from the no or nominal taxation.
Whether there is an absence of a requirement that the activity be substantial.Applying these factors to New Zealand clearly shows why New Zealand has never beenconsidered by the international business society as a tax haven, and why New Zealand willnever be considered a tax haven. Under certain circumstances New Zealand can offerfavourable tax regulations for international investors, but these rules are fully transparentand applied under strict adherence to international regulations. This obvious conclusion isunderlined by the fact that New Zealand has never been regarded as "unfriendly jurisdiction", "uncooperative jurisdiction", "offshore jurisdiction", "tax haven" or been listedon any "black list" or "grey list" by international organizations such as the OECD or FATF,and is still not greylisted or blacklisted by any governments or tax organizations around theworld.There are certain economic, political, and social methods which help tax professionals todetermine the "unfriendliness" of a jurisdiction and classify them as a tax haven. Applyingthese factors to New Zealand will help illustrate New Zealand
’s position as a premier
destination for international business.
Development Manager at Abaconda Management Group , Director of AMGBusiness Development.
Kirill Kruger is a young butexperienced financialconsultant, with aspecialization ininternational and NewZealand taxation research,management and planning.Being a successfulentrepreneur he has alsoauthored advanced studiesin the field of financialacademics, and regularlywrites reports on currentaffairs and developments ininternational and NewZealand finance, taxationand management.
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