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Govt defends tax haven

Written By: - Date published: 8:33 am, October 8th, 2012 - 31 comments
Categories: class war, tax - Tags:

So, it turns out that our ‘foreign trusts’ regime is being exploited so that billionaires from developing countries can avoid tax in their countries. We’re a tax haven. And the Government sees nothing wrong with that. It’s legal, so it’s OK. Yes, we’re helping a foreign elite avoid paying their fair share and rip off poor people, but hey, this is a National Government – that sounds like paradise to them.

31 comments on “Govt defends tax haven”

  1. Akldnut 1

    but hey, this is a National Government – that sounds like paradise to them.

    I cam hear RWNJ’s through out the country screaming out “But it was put in place by a Labour Govt”

  2. burt 2

    Sounds like we are talking about Labour’s best friend Owen Glenn… Funny it was OK when it was a Labour party donor….

    • Kotahi Tāne Huna 2.1

      Déjà vu all over again.

      I have a question: when people point out to you that “he did it too” didn’t work at kindergarten, do you ignore it, forget it, or fail to understand it?

      Not to mention that it exposes your affected outrage at “welfare” as sheer hypocrisy.

    • KJT 2.2

      Didn’t like Labour’s capitulation to the rich and greedy, either!

      And said so repeatedly at the time.

  3. AsleepWhileWalking 3

    Transaction Tax : )

  4. Cayte Shepherd 4

    Read ‘Treasure Islands’ by Nicholas Shaxson to know more about these secrecy jurisdictions. Seems like the International trust funds, used by tax avoiders and evaders from off shore were set up by Prebble, Douglas and co as they left the Labour Party by the right hand door. Remember what Jim Anderton conveyed. The Labour Party left me?
    Tax havens were set up by bankers, which banker/bank is in charge of the nation?
    Also go to http://www.taxjustice.net and http://www.treasureislands.org for good information.

    • Colonial Viper 4.1

      And co-incidentally, virtually every government in the western world is short of tax income. Where is all that money escaping to? NZ tax shelters pushing up the NZ dollar and killing our industries, it would seem.

      • Poission 4.1.1

        US companies have around 1 trillion in cash in overseas havens.Three companies Cisco,GE and Apple have around 250 billion in cash offshore.

        http://www.reuters.com/article/video/idUSBRE88P04C20120926?videoId=237977032

        They are arguing that they can only reshore the cash if the tax system is changed .This brings us to the strange position where 26/100 of the most highly paid CEO,s in the US get paid more then their companies pay in federal tax.

        That is the fundamental underlying problem.

        What I would like to know is does Peter Dunne have 500 paid up members?

        if not he is gone.

    • prism 4.2

      I thought I heard recently that the Cook Islands were a tax haven. I thought no, that was stopped when Winston Peters brought forward the holy Winebox. The sacred bits of information that showed up those NZ shysters who had infiltrated a shonky but working economy and set up a new, stripped down, minimally shonky economy after throwing out the baby with the bathwater. Marvellous set of cliches eh?

      But seriously what is the Cook Island situation now?

      • Herodotus 4.2.1

        there was a doco 5+ years ago from ABC 4 corners or some other Australian tv series that illustrated the near impossibility from changing the Cooks Is tax as the law was almost. The original setup was a few Aussie bankers/lawyers etc that setup the system.
        From a search I was unable to locate a link to the program, perhaps someone can remember this with more clarity and info to provide some linkage.
        Remember even our politicians utilise the system for personal advantage e.g. pension funds. So if the law makers are into it how will it ever change????

  5. ianmac 5

    The Winebox enquiry. Winston Peters. Tax havens Cook Islands. Now NZ is the venue.
    “Legitimate Tax Avoidance,” says Peter Dunne. He reckons it is OK (if you are wealthy enough) to use the system to avoid paying your share of taxes. Perhaps time to explore that?

    • David H 5.1

      And what will happen if we tell the Tax man we’re not paying tax because we are using Legitimate Tax avoidence, we’d end up in jail.

  6. prism 6

    Key talked about us being a ‘financial hub’. So has he allowed or facilitated that to happen.
    A hub that is just part of a larger vehicle for keeping money moving around so that it never stays in one place long enough to be taxed or invested in anything but casinos.

  7. This Government defies all credibility.

  8. NEW ZEALAND – A TAX HAVEN!

    HIDING BEHIND THE ‘PERCEIVED’ STATUS AS THE ‘LEAST CORRUPT COUNTRY IN THE WORLD’?

    How convenient…….

    October 7th – Treasure Islands
    http://ondemand.tv3.co.nz/60-Minutes-Treasure-Islands/tabid/59/articleID/8315/Default.aspx

    Penny Bright
    ‘Anti-corruption campaigner’
    Attendee: 2010 Transparency International Anti-Corruption Conference

    http://www.dodgyjohnhasgone.com

    • This country is simply turning into one big confidence trick-100% pure [bullshit]

      I sincerely hope we can turn in a better direction and undo the damage that is being created by this ship of fools (commonly referred to as “The NZ Government) :(

  9. captain hook 9

    when are day gonna bring in sum gurls for a bunga bunga party?

  10. God of nations! at Thy feet

    In the bonds of contempt and greed we meet,

    Hear our voices, we entreat,

    God defend our Tax Haven.

    Guard Pacific’s triple star rating,

    From the buggers promoting open accountancy,

    Keep our valuables off the balance-sheet

    God defend Our Tax Haven

    ***

    Wealthy Men of ev’ry creed and race

    Gather here before Thy face,

    Asking Thee to bless our Safes,

    God defend our Tax Haven.

    …With dissension, envy, hate,

    And corruption…really….whatever it takes,

    Make our riches become unseen,

    God defend Our Tax Haven.

    ***

    Peace, not war, shall be our boast,

    But, that’s really ever all we do; is boast,

    No reality in our spin; it never really comes close,

    OH! New Zealand’s tax free coast!

    Lord of battles in our might,

    Put our enemies to flight,

    May we have eternal tax-free wealth,

    God defend Our Tax Haven.

  11. Poission 11

    Dunne responds with a load of twaddle,providing further evidence that it is time he was gone.

    http://www.scoop.co.nz/stories/PA1210/S00135/dunne-new-agreement-makes-mockery-of-tax-haven-claims.htm

    Unfortunately two of the countries mentioned on 60 minutes,are not included in the DTA.

    Columbia. Peru are MIA.

    http://taxpolicy.ird.govt.nz/tax-treaties

  12. Draco T Bastard 12

    And thus we come to the negative attention of the international community again.

    Which I am afraid shows just how willing he is to deny the truth. The whole point of this trust law is that there is no NZ tax issue arising from its use by a foreign person, so the Inland Revenue in NZ will never have reason to investigate.

    By his own misinformation does Mr Dunne confirm the truth.

    • Good article DTB,

      Sadly, its probably not negative attention for the money whores…probably something akin to free advertising for them. Do you have any idea what the pay-off for NZ in this is? I’m guessing there is a money-hungry hope that having the richest people in the world using the country as an invisible safe, that they might look into the country and infest in it? Would that be the reasoning behind such an arrangement?

      [Infest wasn’t a spelling mistake by the way……]

    • Jackal 12.2

      I was surprised to learn that we’re considered internationally as one of the best Tax Havens around:

      New Zealand is one of the safest places to consider when investing abroad. The country has stable political and economical systems. The jurisdiction although it offers offshore services and advantages has not been targeted or black listed as a harmful tax haven. The laws which govern offshore entities in New Zealand are very modern and are up to par with its more developed offshore counterparts. The assets placed in New Zealand offshore entities are well protect by New Zealand laws. The tax haven of New Zealand is very helpful for persons who are considering reducing their tax liabilities.

      • Colonial Viper 12.2.1

        At least Shonkey is delivering on his promise of turning us into a “global financial hub”.

        • Draco T Bastard 12.2.1.1

          Those laws have been around since the 4th Labour government put them in place.

        • Jackal 12.2.1.2

          Yeah! For money launderers, arms dealers, mafia gangsters and fraudsters… Non of which is beneficial for New Zealand.

    • Dv 12.3

      From DTB ref
      Peter Dunne
      There’s nothing sinister about that – minimising one’s tax has always been within the law, that’s the difference between avoidance and evasion,” he said.

      BUT what about this
      http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10650576

      “the Court of Appeal, by a two to one majority, concluded that the adoption of the company structure and the non-payment of market salaries, without legitimate reason, amounted to tax avoidance”

      • Draco T Bastard 12.3.1

        Oh dear, it seems that the law disagrees with Peter Dunne. Why am I not surprised?

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