New Zealand ratifies multilateral tax convention

“It’s becoming ever harder to avoid or evade tax” Revenue Minister Todd McClay said today announcing that New Zealand has now taken the final procedural step for ratification of the multilateral Convention on Mutual Administrative Assistance in Tax Matters.

“Last month I released a report on the OECD’s action plan for tackling international tax avoidance and evasion through base erosion and profit shifting practices by large multinationals. New Zealand officials have been very active participants in this global effort. Earlier this month I announced the tax policy work programme which includes work to address these issues.

“Now I am very pleased to announce that New Zealand tax laws and tax administration will be further strengthened by signing up to the Convention on Mutual Administrative Assistance in Tax Matters,” says Mr McClay.

The Convention, which for New Zealand will come into force on 1 March 2014, will help Inland Revenue chase down evaders by requesting information from other tax authorities.

Inland Revenue will also be able to seek assistance in collecting outstanding tax debts from absconding taxpayers who move overseas.

“International tax avoidance and evasion are the biggest threats to our tax system. To tackle it effectively we need to collaborate with other countries. This Convention adds greatly to our ability to clamp down on avoidance and evasion,” says Mr McClay.