Yearly Archives 2009

IRD Settles $2.2 Billion Evasion Case with Banks

December 30, 2009 New Zealand Taxation

BNZ ParaparaumuFive years of legal wrangling has ended in a NZD2.2 billion settlement reached between the New Zealand Inland Revenue Department (IRD) and the country’s four largest banks.

The multi-billion dollar agreement between the IRD and four Australian-owned banks, the Bank of New Zealand (BNZ), ANZ National (ANZ), Westpac and ASB Bank ,was announced in a settlement by Peter Dunne, New Zealand Minister of Revenue on December 23rd. The settlement, believed to be the largest in the country’s history, revolves around alleged tax evasion by the banks through a series of “structured financing” transactions.

Under the conditions of the settlement banks agreed to pay 80 percent of their disputed tax amount...

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New Zealand Company Linked with Weapons Smuggling

December 23, 2009 International FinanceNew Zealand Finance

Dancing Girls of the NorthA New Zealand company has reportedly been linked with transportation of North Korean weapons to the Middle East.

As previously reported, on December 12th a Russian made Il-76 aircraft, carrying weaponry from North Korea, was seized by Thai authorities in a Bangkok airport. The plane was allegedly chartered by a mysterious New Zealand registered company, SP Trading Limited. The destination and buyers are still unknown, and the crew members maintain that they have no knowledge of the weaponry on board. Details emerged that the plane was originally chartered for the flight by the Hong Kong registered Union Top Management Limited, and rechartered to SP Trading.

According to publicly available information on the New Zealand Companies Office, SP Trading was registered on July 22nd, 2009...

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NZ Minister Visits Russia

December 21, 2009 International FinanceNew Zealand Finance

McCully AfghanistanOn December 16-17th, Murray McCully, New Zealand Minister of Foreign Affairs, met with Sergey Lavrov, Minister of Foreign Affairs of the Russian Federation, to discuss bilateral and international issues.

It was noted by the ministers that 2009 marked the 65th anniversary of the establishment of diplomatic relations between the Russian Federation and New Zealand. In a sign of a continued productive relationship it was agreed by both parties to expand potential trade, economic, scientific, cultural and educational opportunities between the nations.

In an agreement on the importance of increasing economic ties between the jurisdictions, both ministers confirmed the importance of strengthening Asia-Pacific regional integration and cooperation on APEC...

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Student Loan Repayment Threshold Unchanged

December 17, 2009 New Zealand Taxation

United Future AnnouncementOn December 16th, Peter Dunner, New Zealand Minister of Revenue, announced that the student loan repayment threshold for 2010-11 will remain unchanged.

The threshold at which student loan holders are required to begin making repayments will remain at $19,084 for the 2010-11 year. The threshold is subject to an annual review, and typically is adjusted according in correspondence to the September consumer price index. The threshold is expected to be reviewed again for the 2011-2012 year.

Commenting on the decision, Peter Dunne said “While the impact on individual borrowers is likely to be minimal, the effect of maintaining the current repayment threshold is expected to lower the overall costs of the scheme to the Crown and is the right decision for the times”.

According to the the Student...

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