An amendment to the Double Tax Agreement (DTA) between New Zealand and Hong Kong entered into force. This amendment widens the exchange of information provisions for the purposes of eradicating tax evasion and avoidance.
The protocol to amend the DTA was signed by Hong Kong, at Hong Kong, on 15 June 2017, and by New Zealand at Wellington, on 28 June 2017. It removes an impediment to the automatic exchange of information (AEOI) between the two tax jurisdictions. It will ensure that the exchange of information article in the DTA fully reflects the international standard for information exchange as set out in the OECD’s Model Tax Convention on Income and on Capital, which forms the basis of New Zealand’s negotiation model, and ensures New Zealand is fulfilling the commitment to the G20/OECD Standard for Automatic Exchange of Financial Account Information in Tax Matter.
Under this AEOI initiative, New Zealand’s financial institutions must review their accounts and compile information which is then reported to Inland Revenue. The updated double tax agreement will allow New Zealand’s first automatic exchange of information with Hong Kong to occur by 30 September 2018. Before this update took place, information was only exchanged on request between Hong Kong and New Zealand. “It enables New Zealand and Hong Kong tax officials to help each other to detect and prevent tax avoidance and evasion,” said New Zealand Revenue Minister Stuart Nash.
Source: New Zealand Inland Revenue
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