Tax Haven New Zealand
Although New Zealand is said not to be a tax haven there are certain features which make people associate the jurisdiction with tax havens. The fact that the country has offshore services which includes offshore business entities and offshore trust formation tend to qualify New Zealand as a tax haven.
As a tax haven New Zealand has a business structure in place which allows clients to save on corporate and income taxes which are levied on corporations. The New Zealand limited partnership company can be structured to operate as an offshore business entity. An offshore corporation incorporated in New Zealand pays no local taxes if all its earnings are accumulated outside of the country. A New Zealand need not have partners who are citizens of the country.
New Zealand as a tax haven has certain laws which in common with some of the world top tax havens. For example the names and information of the limited partners in a limited partnership is not made public hence providing privacy for these individuals. Privacy is one of the basic characteristics of every tax haven. The Limited Partnership act of New Zealand does not obligate limited partnership companies to file annual audits with the tax authority in the tax haven. The laws obligate the limited partnership top prepare its audits but they do not have to be made public information. …
Someone better tell the media too. Here’s some of the international coverage of yesterday’s Panama Papers NZ tax haven revelations:
USA, Reuters TV: New Zealand Named at Heart of Panama Papers (video)
US, Business Insider: Panama Papers say New Zealand offshore tax haven
China, Xinhuanet: New Zealand government hits back as “tax haven” allegations mount
Dubai, Dubai Eye: Panama Papers reveals New Zealand as tax haven
UK, Sharecast: Panama Papers: New Zealand revealed as a tax haven
UK, LiveCharts: Panama Papers: New Zealand revealed as a tax haven
India, Tehelka: New Zealand new entrant in the list of tax-free havens
Japan, Japan Times: New Zealand prime place to hide money: Panama Papers
Maybe it’s time to stop trying to deny the bleeding obvious. If we don’t want to be perceived as a tax haven then we should stop being a tax haven. The tide is turning:
Tax havens have no economic justification, say top economists
Thomas Piketty and Jeffrey Sachs among signatories of letter urging world leaders at UK anti-corruption summit to lift secrecy
More than 300 economists, including Thomas Piketty, are urging world leaders at a London summit this week to recognise that there is no economic benefit to tax havens, demanding that the veil of secrecy that surrounds them be lifted.
When was the last time 300 economists agreed on anything?
In total 47 academics from British universities, including Oxford and the London School of Economics, have signed the letter, which argues that tax evasion weakens both developed and developing economies, as well as driving inequality.
The signatories state: “Territories allowing assets to be hidden in shell companies or which encourage profits to be booked by companies that do no business there are distorting the working of the global economy.”
To counter this, they are urging governments to agree new global rules requiring companies to publicly report taxable activities in every country in which they operate, and ensure all territories publicly disclose information about the real owners of companies and trusts. …
Ball’s in your court John.