The issue about New Zealand’s tax regime was at the forefront. New Zealand made the list of OECD’s as the first country implement the tax standard that is acceptable worldwide substantially. This standard was laid down in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters. This agreement supports the exchange of information by countries for easy enforcement and administration of tax laws.
New Zealand has shown leadership in tax matters by being transparent on how it handles foreign trusts. Former Deputy Prime Minister Michael Cullen introduced the new rules in 2006. New Zealand is supposed to submit a Foreign Trust Disclosure form as required by IRD and keep financial and other records for tax purposes.
Most of the important details that are necessary to be kept as records are the trust deed, the recipient’s name, address, settlements, and distributions. The trustee is required to retain information about the codes of account, accounting system and the chart. These details must be documented in English and failure to do so would invite weighty fines.
Presently, New Zealand has about 39 double tax agreements, and the purpose is to prevent tax evasion and avoidance. Recently, some reasonable growth has been achieved because of the measures that are in place to ensure a better tax compliance. This has improved New Zealand’s recognition internationally as a safe and steady jurisdiction with excellent laws. The judiciary and the legal practitioner are vibrant and focused in ensuring that the rule of law prevails.
Credit must go to the successive Government for making the regulatory environment suitable for tax matters. Most of the service providers are accountants and lawyers of good repute, and they have not seized to uphold the rules of their profession.
One of the respected law firms that are very familiar with New Zealand tax, succession, structuring advice and administrative services is Cone Marshall.
Geoffrey Cone is a renowned lawyer, with almost 30 years of practice and is the head of chambers. Their practice includes assisting families in establishing trusts, partnerships, and companies in New Zealand. Karen Marshall is also a principal lawyer with Cone Marshall, and she has a lot of experience. She has worked with the firm for ten years and has continued to contribute her quota to the development of New Zealand’s tax laws. Cone Marshall has continued to handle legal matters to the admiration of clients both local and international.