From 1st March 2014, the multilateral Convention on Mutual Administrative Assistance in Tax Matters will become effective for New Zealand. The Convention, which New Zealand ratified in November, will greatly enhance the country’s ability to combat tax evasion and avoidance.
The Revenue Minister has stated that the only way to achieve a fair outcome in each country is for countries to collectively agree to share information. The New Zealand Revenue will be able to request tax information from other tax authorities and obtain assistance in collecting tax debts.
The Convention was developed jointly by the Organisation for Economic Cooperation and Development (OECD) and the Council of Europe. It is open to all countries, and Canada is ratifying it at the same time as New Zealand. It is thought that Russia will be the next state to take this step.
