NZ to strengthen tax agreements with India, San MarinoRevenue
Two Orders in Council signed this week will help strengthen New Zealand’s tax agreements with India, and with San Marino, to prevent tax evasion, says Revenue Minister Judith Collins.
The Third Protocol to New Zealand’s double tax agreement (DTA) with India updates previous exchange of information provisions and inserts an article relating to assistance in the collection of taxes into the DTA.
“This will make the existing exchange of information provisions in the DTA operate more effectively, and allow each country to assist each other in the collection of unpaid taxes,” says Ms Collins.
Similarly, the tax information exchange agreement (TIEA) with the Republic of San Marino implements the current international standard for exchange of information between New Zealand and San Marino.
While exchange of information provisions have traditionally been included in DTAs, new international standards require the exchange of information with tax jurisdictions with which DTAs may not be appropriate. The new TIEA with San Marino allows that requirement to be implemented.
The agreements will come into force once diplomatic formalities have been completed in each country, Ms Collins says, and will give signatories greater ability to share information to prevent tax evasion.