WALLINGTON: New Zealand’s Inland Revenue will have more power to go after tax evaders who leave NZ under changes that come into effect this year.
THE Convention on Mutual Administrative Assistance in Tax Matters, signed in 2012, enables co-operation between international tax authorities in the assessment and collection of taxes.
The convention comes into effect in New Zealand on New Year’s Day.
NZ will now be able to seek assistance from other tax authorities signed up to the convention to collect outstanding tax debts from taxpayers who have moved overseas.
The changes effectively mean offshore no longer means off limits.
Since 2009 the NZ’s IRD has collected $40 million in unpaid taxes after receiving 23,000 anonymous tips about suspected tax evaders.
