A recent media publication about New Zealand’s foreign trust makes it sound like a tax haven. However, the OECD maintains that New Zealand is not a tax haven. A tax haven lacks tax transparency, imposes nominal taxes, and foreign trust procedures inhibits the flow of information to other governments. Based on the grounds above, New Zealand does not qualify to be a tax haven. Furthermore, New Zealand’s private banking industry is not as complicated as is alleged.
New Zealand was involved in the establishment of 2002 gold standard for transparency, a foreign trust model that supports the exchange of information with other governments to enforce domestic tax laws. New Zealand featured on OECD’s white list for having implemented the agreed global tax standards. Furthermore, New Zealand demonstrates tax transparency by implementing the agreed tax standards to facilitate the exchange of relevant tax information. In 2006, Michael Cullen led in the formulation of new tax rules in New Zealand. Under the new regulations, trustees of a foreign trust must provide their financial records and submit the IR607 form.
About Cone Marshall
Founded in 1999, Cone Marshall is a global level tax and trusts law firm located in Auckland. The firm was founded by Geoffrey Cone and Karen Marshall. Before establishing Cone Marshall in 2005, Karen Marshall worked in a London-based Commercial Litigation department for over a decade. She has been Cone Marshall’s principal since 2006. With an extensive experience in trusts management, Karen Marshall is an advisor to legal trustee firms. Contrary, Geoffrey Cone specializes in international trusts and tax planning.
Cone Marshall partners with governments and their advisors in establishing foreign trusts and providing global investment and tax advice. In a 2012 article posted on social media sites, Geoffrey Cone discredited the notion that New Zealand’s private banking industry had complex financial deals and that the country was a tax haven. Instead, he claimed that New Zealand subscribes to the principles of international tax laws.
Geoffrey Cone also noted that New Zealand’s foreign trusts are on increase. The recent growth in New Zealand’s foreign trusts is attributed to the countries stability, tightened security, and well-structured judiciary and banking industry. New Zealand’s excellent reputation as a safe and stable place to base one’s assets is instrumental to the increase of its foreign trusts. Over the years, Cone Marshall adheres to international tax and trust transparency and provides affordable advice on international tax and trust law.