New Zealand And Cook Islands Agree To Exchange Tax Information

by Mary Swire, Asia-Pacific stories, Hong Kong

24 July 2009

New Zealand and the Cook Islands have signed a Tax Information Exchange Agreement between their two countries as part of international efforts to strengthen cooperation in this area. It was also agreed to establish an annual Joint Ministerial Forum that will further strengthen the special relationship between the Cook Islands and New Zealand.

The Agreement provides for full exchange of information on criminal and civil tax matters between the two countries, according to New Zealand’s Revenue Minister, Peter Dunne. "We welcome the signing of this important Agreement with the Cook Islands, with whom we have a close historical, economic and cultural relationship," he said.

"The Agreement will enable the tax authorities of both countries to gain access to information about income and assets that would-be evaders try to hide in the other country,” he continued. "Having access to that information is especially important at a time when countries everywhere are doing all they can to protect their tax bases."

Mr. Dunne said that the Agreement will cover "not only information held by banks and other financial institutions, but also information on who benefits in company ownership chains and on the settlors, trustees and beneficiaries of trusts."

New Zealand’s Prime Minister, John Key, who signed the agreement on behalf of New Zealand, said: “Regular high-level political engagement between our two countries will play an important role in assisting the Cook Islands in developing its economy and also reflects the strong relationship that underpins our partnership.”

Mr Key also highlighted New Zealand’s increased official development assistance funding to the Cook Islands which will increase from NZD11m to NZD14m this year, and then to NZD17m in 2011/12. “This assistance, delivered through NZAID,” he said, “will focus on support for activities which contribute to sustainable economic development.”

New Zealand already has a Tax Information Exchange Agreements with the Netherlands Antilles and Bermuda. Several others are expected to be signed over the next few weeks.

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