CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Zealand Committed To BEPS Action, Says Woodhouse

New Zealand Committed To BEPS Action, Says Woodhouse

by Mary Swire, Tax-News.com, Hong Kong

17 November 2016


Countering base erosion and profit shifting (BEPS) strategies is not a new-found enthusiasm for the Government, Michael Woodhouse, New Zealand's Minister of Revenue has said, while noting that the Government still has work to do in this area.

Woodhouse was delivering the opening address at the Chartered Accountants Australia and New Zealand Annual Conference on November 17, 2016.

Woodhouse said that while the country's "transfer pricing rules are robust, there's no denying that the ground has shifted somewhat with practices having evolved since then. That is why it is important to take another look and see whether our rules can be made even stronger."

He said: "The OECD's new transfer pricing guidelines are now considered to be the benchmark and will prevent companies reducing their tax by using artificial transactions between associated parties which would not normally occur between third parties. Transfer prices and conditions that do not align with the actual substance of the multinational's economic activities will be modified by the rules."

Woodhouse said that the Government is considering measures that will make it harder for multinationals to avoid having a taxable presence in New Zealand if they are involved in significant economic activity there. The Government is also looking to release proposals next year to bolster New Zealand's thin capitalization rules, to ensure that foreign-owned firms cannot shift excessive profits out of New Zealand.

The Government will also take adequate measures in 2017 to neutralize the effects of hybrid mismatches and is closely monitoring the progress made by the UK and Australia in this area. It is also closely watching what Australia and the UK are doing in regards to Diverted Profits Tax. "Officials have provided some advice to the Government and we will look to say more on this in the near future," he said.

Last, Woodhouse said that New Zealand intends to sign the OECD's multilateral instrument to implement the tax treaty-related BEPS measures next year.

TAGS: compliance | tax | investment | business | tax compliance | tax avoidance | interest | law | Organisation for Economic Co-operation and Development (OECD) | Australia | United Kingdom | ministry of finance | agreements | multinationals | legislation | tax planning | transfer pricing | withholding tax | New Zealand | G20 | tax reform | trade | business investment | Tax | BEPS

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »