Fewer than 70 out of 11,645 New Zealand foreign trusts have reregistered following the introduction of tougher disclosure and eligibility requirements, with only three weeks left to go before the final deadline.
New Zealand taxes trusts on the basis of the tax residence of the settlor. It provides an exemption for foreign-sourced amounts derived by trustees resident in New Zealand if the trust is classified as a foreign trust.
The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill seeks to ensure that these trusts cannot be used for aggressive tax avoidance or evasion, by enhancing the amount of information required from taxpayers and verifying their eligibility to the exemption.
The legislation introduced an obligation for affected trusts to register with Inland Revenue, file annual disclosure returns, and pay registration and filing fees in order to continue to benefit from the tax exemption. Information on the register of foreign trusts is to be shared with certain New Zealand government agencies.
The opposition Green Party, which released the numbers, said the Inland Revenue had proactively de-registered 1,797 foreign trusts since February.
"Holding foreign trusts to higher disclosure requirements will improve our international reputation..." Green Party Co-leader James Shaw said.
Treaty Update: Croatia - United Arab Emirates
Croatia and the United Arab Emirates signed a DTA on July 13, 2017.
Treaty Update: Canada - Grenada
Canada and Grenada signed a TIEA on July 14, 2017.
Treaty Update: United Arab Emirates - Cameroon
The United Arab Emirates and Cameroon signed a DTA on July 16, 2017.
Treaty Update: Grenada - Canada
Grenada announced the signing of a TIEA with Canada on July 17, 2017.
Treaty Update: Zimbabwe - Namibia
Namibia and Zimbabwe have begun negotiations to revise their DTA.
Treaty Update: Cambodia - Hong Kong
According to preliminary media reports, Cambodia and Hong Kong have initiated negotiations towards concluding a DTA.
Treaty Update: Ireland - Uruguay
Ireland has newly disclosed that it has completed DTA negotiations with Uruguay.
Treaty Update: India - Portugal
A DTA Protocol has been signed between India and Portugal, the Indian Government announced on June 23, 2017.
Treaty Update: Russia - Japan
The Russian Government has announced that it intends to soon sign a DTA with Japan.
Treaty Update: Japan - Iceland
Japan announced on May 29, 2017, that it had reached a DTA in principle with Iceland.
Treaty Update: Spain - Cape Verde
Spain and Cape Verde signed a DTA on June 5, 2017.
Treaty Update: Cyprus - San Marino
Cyprus and San Marino signed a DTA Protocol on May 19, 2017.
Treaty Update: Maldives - Malaysia
According to preliminary media reports, Maldives and Malaysia have begun DTA negotiations.
Treaty Update: Japan - Denmark
Japan announced that it had concluded DTA negotiations with Denmark on May 15.
Treaty Update: Barbados - Cyprus
Barbados and Cyprus signed a DTA on May 10, 2017.
Treaty Update: Brazil - Various
Brazil's Committee on Foreign Relations and National Defense on May 4, 2017, approved a DTA between Brazil and Russia, and a DTA Protocol between Brazil and India.
Treaty Update: Luxembourg - Cyprus
Luxembourg and Cyprus signed a DTA on May 8, 2017.
Treaty Update: Jordan - Thailand
Jordan and Thailand agreed the text of a DTA on May 11, 2017.
Treaty Update: Italy - Barbados
Italy's Chamber of Deputies approved a law to ratify the DTA with Barbados on May 2, 2017.
Treaty Update: Bahrain - Thailand
Bahrain and Thailand signed a DTA Protocol on April 25, 2017.
Treaty Update: Mexico - Spain
Mexico's Senate on April 27, 2017, approved a DTA Protocol with Spain.
Treaty Update: Pakistan - Bulgaria
Pakistan and Bulgaria signed a DTA on April 26, 2017.
Treaty Update: Ireland - Kazakhstan
According to preliminary media reports, Ireland and Kazakhstan signed a DTA on April 27, 2017.
Treaty Update: Andorra - Latvia
Andorra and Latvia have begun negotiations on amending their DTA.
Treaty Update: Latvia - Japan
The Latvia-Japan DTA entered into force on March 30, 2017.