Monthly Archives July 2009
The New Zealand Government and Guernsey have signed an OECD standard agreement for the sharing of information for taxation purposes.
In a London ceremony on the 22nd of July, Revenue Minister Peter Dunne signed a Tax Information Exchange Agreement with Guernsey on behalf of New Zealand. In a Government released statement, Peter Dunne said “The Tax Information Exchange Agreement with Guernsey will help to encourage greater co-operation between tax authorities,” and “I am very pleased with this important addition to New Zealand’s network of information exchange agreements.”
The Tax Information Exchange Agreement was put in place to allow a procedure by which the two governments can request tax records, business books and accounts, bank information, ownership information, with the explicit ...Read More
The High Court has ruled that the BNZ bank must pay the Inland Revenue Department $416 million dollars back in taxes.
It was ruled by Justice Wild, from the High Court, that BNZ bank would have to repay any taxation benefits that they garnered from their involvement in “structured financing”. It was decided, in a 179 page verdict, that the structured financing was created solely for taxation benefit purposes and thus was regarded as tax evasion.
The “structured financing” set-up involved BNZ making equity investment in offshore entities. Conditions were set mandating that the entity repurchase the equity upon transaction close. This allowed BNZ to write off the cost of this transaction as a business expense. In total, six such transactions were made between 1998 and 2005.
In rega...Read More
July 20, 2009 New Zealand Taxation
Te Kuiti based store owner and accountant has been given 12 month jail for PAYE evasion and GST fraud.
James Ivan Woollams, owner of Cabana Gifts in Te Kuiti and accountant, has pleaded guilty to 76 charges involving PAYE and GST fraud. In the time between April 1998 until March 2004 James Woollams employed five shop assistants, in that time he failed to pass any of their PAYE deductions to Inland Revenue.
The fraud was discovered when the employees approached Inland Revenue wanting to know why they had no earnings recorded to their name. Request were sent for records to James Woollams, but were ignored. Statute demands were then issued, but also ignored.
Investigations yielded evidence of $21,483 in missing PAYE deductions and $3,784 was understated in GST...Read More
Credit Rating agency, Fitch Ratings has lowered the New Zealand credit rating from “stable” to “negative”.
The New Zealand Dollar (Kiwi) fell against all of its major trading partners upon the release of the news that the New Zealand credit rating has fallen. On announcement day, the Kiwi fell from 64.61 US Cents, to 63.89 US Cents. Against the Australian Dollar, the Kiwi fell .55 cents, and .53 against the Yen.
The rating change by Fitch is not necessarily conceded between all ratings agencies. Goldman & Sach’s raised its outlook on New Zealand at its last revision...Read More