Panama papers – Shewan inquiry – our rules are inadequate

Written By: - Date published: 4:25 pm, June 27th, 2016 - 26 comments
Categories: accountability, business, International, tax - Tags: , ,

There were many who were concerned that John Shewan was not a good choice for an inquiry into NZ’s tax haven system. Seems we owe Shewan an apology, as initial reaction suggests that he has done a good job:

NZ foreign trust rules inadequate

The inquiry into New Zealand’s foreign trusts regime has found the current rules are inadequate, and are not robust enough to protect this country’s international reputation.

The review by John Shewan was ordered in response to questions raised about New Zealand’s role in helping wealthy foreigners hide their money offshore, after the release of the leaked Panama Papers.

Mr Shewan has recommended a significant increase in information to be disclosed when a foreign trust is set up, annual reporting and increased enforcement.

He described the current disclosure requirements as “light-handed” and said tougher disclosure rules would act as a deterrent for anyone looking to use New Zealand trusts for illicit purposes. …

Page on the report is here. The Executive Summary is here. Vernon Small’s summary here. Initial response:

The Government has confirmed a shake-up of foreign trusts following a review sparked by the Panama Papers.

And some other reaction…

26 comments on “Panama papers – Shewan inquiry – our rules are inadequate ”

  1. NZJester 1

    Is John Key actually going to look like he is doing something before the next election to try and bring in the middle ground voters?
    I guess all the polls must have been telling him that it was not a good look.

    • leftie 1.1

      It’s business as usual I’m afraid. It’s been 8 years of the key National government pretending to look like they are doing something, when they are not… and that won’t change.

      • NZJester 1.1.1

        Well, I did say “going to look like he is doing something” and not “going to do something”!
        Business as usual, like figuring out the very minimum they can do to make it look like they are doing something, but to an extent, it is so watered down as to be near useless you mean?

        More National Party hearty strong soup: 0.001% artificial stock mix and 99.999% water to feed to hungry voters.

  2. Sirenia 2

    John Shewan describes why NZ is a tax haven but says NZ is not actually a tax haven. But his remedy proves we are, and therefore need to have disclosure rules.

    • leftie 2.1

      Yes, exactly right Sirenia, but John key will be pleased his mate is backing him up by declaring NZ as not being a tax haven, when clearly it is. That was always going to be the rhetoric. Actions speak louder than words, don’t they?

      • Greg 2.1.1

        Are you surprised, the Treasury reported to Key that the changes he wanted to implement in 2010 would make NZ a tax haven, and have negligible effect for NZ tax base, when Key kept quoting the treasury report, their tax haven threat had been removed in the history,
        Yet Keys dream of NZ being a pacific financial hub was suppose to make huge amounts for the IRD.

        • leftie 2.1.1.1

          No I am not surprised in the least. And no, imo it wasn’t. John Key’s dream was to create huge wealth for himself and his mates. Key always intended to make NZ a tax haven. John key is a derivatives trader, tax havens have always been a factor, and being a lying dishonest PM with no accountability whatsoever, has made the job so much easier, don’t you think? Is it sheer coincidence that the NZ dollar is one of ten most traded currencies in the world?

          • Greg 2.1.1.1.1

            Treasury debt is down to 112 Billion, so they must have made a killing the pound dropping.

            • leftie 2.1.1.1.1.1

              NZ’s govt debt is always going up, never down under John key’s 8 years of misgovernance, and it’s during Key’s tenure as PM that NZ’s dollar has become one of ten most traded currencies in the world. Hence my question, is it just a sheer coincidence then, when NZ has a derivatives trader as PM? What has the pound dropping got to do with it? Brexit is the cause for that.

  3. Bearded Git 3

    Reporting of annual accounts, searchability and details of who benefits financially are exactly what Labour and the Greens said was wrong with the system.

    Key denied there was anything wrong at all. Liar.

    And why is Key saying “the government is likely to implement most of the recommendations”. He should be saying “the government will implement all of the recommendations”.

    • whispering kate 3.1

      Yes BG that was my first thought, when he said “the government is likely to implement most of the recommendations” – although I thought he said “the majority of the recommendations” – I think the PM is a tosser and a liar and will weasel out of this inquiry every way which way he can.

  4. North 4

    Key said we had “full disclosure” therefore no problem. Shewan says Key’s “full disclosure” is inadequate. The suggested changes are quite substantial. Key always knew his “full disclosure” was a distracting and diverting soundbite. Whom was Key looking after, whom was he featherbedding when he embraced ‘no problem’ ?

  5. Bill 5

    If Obama and others hadn’t indicated that they were going to do something about off-shore trusts, do you really think Shewan would have compiled a report like the one he has?

    I don’t think so.

    Shewan was a hopeful punt – a bit of insurance on the off-chance that international sentiment was such that New Zealand could get away with carrying on as before. Internationally, it hasn’t panned out the way that perhaps Key and others would have wished, so ‘their man’ returns a report that anyone else would have returned under any circumstances (ie – whichever way international sentiment was headed).

    • Bearded Git 5.1

      Key simply won’t implement the recommendations.

      • Draco T Bastard 5.1.1

        Well, he won’t implement the important ones or will implement them in such a way that there’s large loopholes that his buddies in the finance sector will easily get around and so NZ will remain a tax haven.

  6. reason 6

    Gosh, fancy Shewan doing a half decent job when he was under so much scrutiny we had a microscope up his ass………. and we all knew Key had set us up as a tax haven

    Personally I think Shewan owes us about $440 million which is the 20% the banks were let off ………………… I’ve never heard of a beneficiary getting 20% back when they commit fraud….. and they can go to jail for stealing 0.01% of what the aussie banks tried to drive off with …..in Shewans tax vehicle .

    The problem is that neither Shewan or any of the bank managers went to jail or lost their jobs …………..

    Because of this we can be damn sure they will be having another go …… if they are not doing it already.

    Its an environment of huge rewards if the fraud sticks ……………. and no punishment if it does not.

    And given that Key regards Shewans expert opinions as better than justice wild and the other high court judge who judged him …. both of whom thought he or his ‘tax vehicle’ were a con………….. when will key change the law to make shewan legally correct.

    Judith Collins probably has some tax loop holes, possibly involving kauri logs to contribute to nationals new but inevitably shit law.

    When is Key going to show his tax returns ?.

    • leftie 6.1

      +100 Reason. Not only Oravida swamp kauri, add Oravida milk, and Oravida waters, and no doubt other primary industries Judith “conflicts of interests” Colins/Oravida are heavily involved in.

      Saw a pic of Collins in an online news website, I thought she was looking very “Angela Merkel” these days.

  7. Greg 7

    Shewan has done a real team players job, reporting back using almost the exact words John Key has used to describe the zero rated tax company trust structures, (dont mention Tax Haven, dont mention Tax Haven, doh) with making them complaint with EU Tax avoidance and money laundering rules. Its a pity that he justified an extra payment to the IRD early this year of 205 Million dollars to get them complaint. Thats a really sound economic decision by the economic brilliance of our dear leader.

  8. Incognito 8

    Key said the recommendations were sensible and well-reasoned and there had been “no real push-back” by Cabinet.

    “Most” would be put in place, though anti-money laundering law changes would be covered by laws already in the pipeline.

    http://www.stuff.co.nz/business/81497014/shewan-report-recommends-greater-disclosure-annual-returns-by-foreign-trusts

    Strike me down with a feather; Key and the Nats accept this report just like that without any argy-bargy!?

    • Greg 8.1

      They dont know what the big players are going to do, so its a each way bet.
      Says a lot how they have not been open to investigation by regulated agencies.

      Just how many are actually legitimate.

  9. Keith 9

    We’re not a tax haven according to Mr Shewan, essentially in defiance of what is being advertised to overseas clients wishing to hide their money tax free. So in that respect the whitewash is complete, Key will claim a victory. What a surprise…not!

  10. One Anonymous Bloke 10

    I’m inclined to be cynical, and you can’t ignore what Deborah Russell and Julie-Ann Genter are saying. I fully expect they’ll be keeping a close eye on the lying Prime Minister to see how he corrupts the intent of the reforms.

  11. Smilin 11

    Its all very fine of the govt to institute one of their own to do the job that a Royal commision should have been doing with our elected representatives fully briefed on all the shit hiding behind this for the last god knows how long
    Also its not news Bernie Sanders has been at the US for 10 yrs plus over this crap and this govt and LABOUR HAVE BEEN SWINGIN THE LEAD ON IT
    Key and his not so funny money games is enough to give you the you know what

  12. So we had to pay this Shewan guy to tell us stuff that we already knew back in 2013?

    • ALZ 12.1

      The OECD has been working on and advising our government since 2012 at least.
      It was a stall for time and a false way of claiming that the work was done by Shewan at the instructions of national (to look like independent )
      https://www.youtube.com/watch?v=MGEWLX-jUlI&list=PL96BBC83DFCD8447E&index=47
      Trying to claim glory for straightening out the “near criminal” system they participated in for years. And which has been on the cards anyway for years via
      the oecd. No one will be prosecuted for fraudulently filing tax papers, no money will be recovered from the billions misappropriated over years. It is another disgusting sham.

Recent Comments

Recent Posts

  • Pharmac Chair appointed
    Hon Paula Bennett has been appointed as member and chair of the Pharmac board, Associate Health Minister David Seymour announced today. "Pharmac is a critical part of New Zealand's health system and plays a significant role in ensuring that Kiwis have the best possible access to medicines,” says Mr Seymour. ...
    BeehiveBy beehive.govt.nz
    6 hours ago
  • Taking action on Fetal Alcohol Spectrum Disorder
    Hundreds of New Zealand families affected by Fetal Alcohol Spectrum Disorder (FASD) will benefit from a new Government focus on prevention and treatment, says Health Minister Dr Shane Reti. “We know FASD is a leading cause of preventable intellectual and neurodevelopmental disability in New Zealand,” Dr Reti says.  “Every day, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New sports complex opens in Kaikohe
    Regional Development Minister Shane Jones today attended the official opening of Kaikohe’s new $14.7 million sports complex. “The completion of the Kaikohe Multi Sports Complex is a fantastic achievement for the Far North,” Mr Jones says. “This facility not only fulfils a long-held dream for local athletes, but also creates ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Diplomacy needed more than ever
    Foreign Minister Winston Peters’ engagements in Türkiye this week underlined the importance of diplomacy to meet growing global challenges.    “Returning to the Gallipoli Peninsula to represent New Zealand at Anzac commemorations was a sombre reminder of the critical importance of diplomacy for de-escalating conflicts and easing tensions,” Mr Peters ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Anzac Commemorative Address, Buttes New British Cemetery Belgium
    Ambassador Millar, Burgemeester, Vandepitte, Excellencies, military representatives, distinguished guests, ladies and gentlemen – good morning and welcome to this sacred Anzac Day dawn service.  It is an honour to be here on behalf of the Government and people of New Zealand at Buttes New British Cemetery, Polygon Wood – a deeply ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Anzac Commemorative Address – NZ National Service, Chunuk Bair
    Distinguished guests -   It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders.   Our presence here and at the other special spaces of Gallipoli is made ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Anzac Commemorative Address – Dawn Service, Gallipoli, Türkiye
    Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia.   Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM announces changes to portfolios
    Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New catch limits for unique fishery areas
    Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister welcomes hydrogen milestone
    Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Urgent changes to system through first RMA Amendment Bill
    The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Overseas decommissioning models considered
    Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Release of North Island Severe Weather Event Inquiry
    Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Justice Minister to attend Human Rights Council
    Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order.  “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Patterson reopens world’s largest wool scouring facility
    Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024
    Hon Andrew Bayly, Minister for Small Business and Manufacturing  At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin    Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho    Good Afternoon and thank you for inviting me to open your summit today.    I am delighted ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government to introduce revised Three Strikes law
    The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New diplomatic appointments
    Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions.   “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says.    “I am pleased to announce the appointment of these senior diplomats from the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Humanitarian support for Ethiopia and Somalia
    New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today.   “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Arts Minister congratulates Mataaho Collective
    Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale.  “It is good ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting better financial outcomes for Kiwis
    The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Trade relationship with China remains strong
    “China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says.   Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    2 weeks ago

Page generated in The Standard by Wordpress at 2024-04-28T03:44:13+00:00