In the recent media coverage, it sounds like the New Zealand foreign trust involves wealth people and big financial deals. There is openness in tax information system with the government the rules are followed to the latter in all transactions involved. There is no in any chance secret private banking involved each and every business entity is open to the market. The transparency in matters involving tax information is highly supported by the international exchange information that administers the tax domestic law. New Zealand is among the countries which have satisfactorily set up the agreed international tax standard one of the ways where the country has been in the fore front in demonstrating tax transparency leadership is through the ways in which it handles foreign trust as well as trustees.
On the other hand New Zealand assists other international government by providing the relevant tax information required by the government. To aid in transparency, New Zealand has a foreign trust that is required by IRD in order to submit a foreign disclosure form as well as ensuring that the financial records are on track for New Zealand aids or objectives which Cone Marshall disclosed in an article. It includes distribution details, trust details, settlement details, liability detail as well money received and spent by the trustee. For example, if the trust transacts a particular business then the trustee must update the accounting system with information including code and charts of the account information system.
Failure to keep all the records and recording them in English will attract huge penalties. This is to avoid any of money laundering that might be involved. Reports on the settlement of any funds to any central bank or revenue authority must be provided. The person settling the trust must go further to report the same in their own counties. This will provide enough evidence of the whole transaction and the information can be retrieved at any particular time for confirmation.
New Zealand is on the forefront to close all the loopholes as well as assist in curbing any form of tax aviation and tax avoidance and at the helm of this operation is the law firm Cone Marshall headed by Geoff Cone and Karen Marshall. Exchange tax agreements have been signed with other countries which are geared towards tax evasion and avoidance. On the other hand, New Zealand has signed a multilateral convention on mutual administration assistance in matters concerning tax. It’s clear that this is not a tax haven and the jurisdiction has come up with good laws and a well-established legal infrastructure that ensures that New Zealand global tax reputation is protected.