web analytics

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?

Recent Comments

Recent Posts

  • New Zealand a world leader – in unaffordable housing
    The National Government has made New Zealand a world leader – in unaffordable housing, Labour’s Housing spokesperson Phil Twyford says. “The latest International Monetary Fund report shows New Zealand had the world’s second fastest growth in house prices at the… ...
    43 mins ago
  • New Zealand a world leader – in unaffordable housing
    The National Government has made New Zealand a world leader – in unaffordable housing, Labour’s Housing spokesperson Phil Twyford says. “The latest International Monetary Fund report shows New Zealand had the world’s second fastest growth in house prices at the… ...
    43 mins ago
  • Hospital meals making you sick
    I don’t know about you but I felt a bit sick watching Health Minister Jonathon Coleman eat supposed Dunedin hospital food last week.  Dunedin people have tolerated a crumbling hospital, lower access to services, longer waiting times and gross food… ...
    GreensBy Metiria Turei
    2 hours ago
  • Hospital meals making you sick
    I don’t know about you but I felt a bit sick watching Health Minister Jonathon Coleman eat supposed Dunedin hospital food last week.  Dunedin people have tolerated a crumbling hospital, lower access to services, longer waiting times and gross food… ...
    GreensBy Metiria Turei
    2 hours ago
  • Key needs to stop shifting and come clean
    John Key’s position on his lawyer’s offshore trusts lobbying has changed yet again with the Prime Minister admitting he told Todd McClay that Ken Whitney had approached him, says Labour’s Finance spokesperson Grant Robertson. “Yet again information has to be… ...
    4 hours ago
  • Key needs to stop shifting and come clean
    John Key’s position on his lawyer’s offshore trusts lobbying has changed yet again with the Prime Minister admitting he told Todd McClay that Ken Whitney had approached him, says Labour’s Finance spokesperson Grant Robertson. “Yet again information has to be… ...
    4 hours ago
  • Revolutionary art in Palmerston North
    Last night I was a judge at the May Day Cup, an annual theatrical event which celebrates International Workers Day. The event was organised by stalwart unionist Dion Martin and included a range of performers competing for the Cup. This year… ...
    GreensBy Catherine Delahunty
    1 day ago
  • Revolutionary art in Palmerston North
    Last night I was a judge at the May Day Cup, an annual theatrical event which celebrates International Workers Day. The event was organised by stalwart unionist Dion Martin and included a range of performers competing for the Cup. This year… ...
    GreensBy Catherine Delahunty
    1 day ago
  • Andrew Little visits Zaatari refugee camp
    Leader of the Opposition, Andrew Little, has visited the largest Syrian refugee camp in the world, Zaatari in Jordan, a day after seeing New Zealand troops at Camp Taji in Iraq. Mr Little spent several hours in the camp, meeting… ...
    2 days ago
  • Com Com’s Z Energy decision anti-competitive
    The Commerce Commission’s decision to allow Z Energy to buy Caltex can only undermine the competition in the fuel industry that is needed to ensure New Zealanders pay the lowest price for petrol, Labour’s Consumer Affairs spokesperson David Shearer says.… ...
    2 days ago
  • Com Com’s Z Energy decision anti-competitive
    The Commerce Commission’s decision to allow Z Energy to buy Caltex can only undermine the competition in the fuel industry that is needed to ensure New Zealanders pay the lowest price for petrol, Labour’s Consumer Affairs spokesperson David Shearer says.… ...
    2 days ago
  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    3 days ago
  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    3 days ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    3 days ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    3 days ago
  • OIO must explain Argentine pollution prosecutions
    The Overseas Investment Office (OIO)has questions to answer about how it safeguarded our sensitive land by allowing foreign investors with criminal prosecutions to purchase Onetai Station in Taranaki, says Labour’s Land Information spokesperson David Cunliffe.   “Rafael and Federico Grozovsky… ...
    3 days ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    3 days ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    3 days ago
  • Murray McCully needs to come clean over Tokelau ferry debacle
    Foreign Minister Murray McCully needs to come clean on why a New Zealand aid-funded vessel intended to service the Tokelau Islands is delayed, over budget and failed its sea trials, Labour’s Foreign Affairs spokesperson David Shearer says. “The new ship… ...
    3 days ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    3 days ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    3 days ago
  • Andrew Little visits NZ troops in Iraq and refugees in Jordan
    Opposition Leader Andrew Little has visited New Zealand troops at Camp Taji, Iraq. Mr Little also met with Iraqi Defence Minister Khaled Al-Obedih and senior military officials from the Coalition forces in Iraq. He now heads to Jordan to see… ...
    4 days ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    4 days ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    4 days ago
  • Minister must come clean on implications of landmark settlement
    Gerry Brownlee has urgent and serious questions to answer in the wake of today’s landmark EQC settlement, which potentially has major implications for thousands of Cantabrians, says Labour’s Canterbury spokesperson Megan Woods. ...
    4 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    4 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    4 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    4 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    4 days ago
  • Dam not out of doldrums yet
    Ruataniwha Dam promoters Hawke’s Bay Regional Investment Company (HBRIC) still has hurdles to clear and a lot of work to do before ratepayers and taxpayers will have confidence in the scheme, says Labour’s MP for Ikaroa-Rāwhiti Meka Whaitiri.“We need sustainable… ...
    4 days ago
  • New study shows Smith’s insulation fails Kiwi kids
    A new Otago University study shows Nick Smith’s inadequate insulation standards will see hundreds of children unnecessarily hospitalised for housing-related illnesses every year, Labour’s Housing spokesperson Phil Twyford says. ...
    5 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    5 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    5 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    5 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    5 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    5 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    5 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    5 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    5 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    5 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    5 days ago
  • John Key’s land tax could push up rents
    A land tax proposed by John Key as the answer to the housing crisis could push up rents and risks having no effect on skyrocketing prices, Labour’s Housing spokesperson Phil Twyford says. “The Government needs to explain why the thousands… ...
    6 days ago
  • Government should ban foreign speculators
    The Prime Minister’s musings about a land tax on non-resident buyers is just more tinkering, and the Government should just ban foreign speculators as the Australian Government has done, says Labour’s Housing spokesperson Phil Twyford. “This is classic John Key.… ...
    6 days ago
  • Government must protect Pharmac as promised
    John Key must tell New Zealanders that he will not bow to pressure from wealthy drug companies or their US negotiators and put Kiwi lives at risk, Labour’s Health spokesperson Annette King says.   “News reports today have the drug… ...
    6 days ago
  • Action not words, needed on housing speculation
    John Key should be taking action to crack down on speculation in our overheated housing market, instead of random musings on land tax, Labour Housing spokesperson Phil Twyford said.  "John Key suggested today on TVNZ's Q and A programme that… ...
    1 week ago
  • Tertiary education cost rising 7x faster than inflation
    New figures show the cost of tertiary education is rising seven times faster than inflation, putting post-school education out of the reach of many, Opposition Leader Andrew Little says.  “Figures release this week show how much more students or their… ...
    1 week ago
  • Buying Lotto is not an arts funding strategy
    The Government must rethink the way the arts are funded after falling Lotto sales has left the sector with declining resources and increasingly vulnerable, Labour’s Arts, Culture and Heritage spokesperson Jacinda Ardern says.  “Our arts sector is in a sorry… ...
    1 week ago
  • Parents hit in pocket by Government under-funding
    Parents and families are left forking out more and more for their kids’ education as a direct result of Government under-funding, Labour’s Education spokesperson Chris Hipkins says.  “The latest data shows that the cost to families of primary and secondary… ...
    1 week ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    1 week ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere