UK-NZ double tax agreement to be updated
The double tax agreement between the United Kingdom and New Zealand is being updated to strengthen co-operation between
the two countries in the enforcement of their tax laws and collection of tax, Revenue Minister Peter Dunne announced
today.
“Double tax agreements have two purposes: their main purpose is to reduce tax impediments to cross-border trade and
investment, but they also help the tax authorities of the two countries involved to detect and prevent tax avoidance and
evasion,” Mr Dunne said.
“The 1983 agreement between the United Kingdom and New Zealand is being updated to follow more closely the new OECD
standard on exchange of information between tax authorities and, in particular, allow authorities to exchange
information on other taxes besides income tax.
“The update will also enable the two tax authorities to request assistance from each other in the recovery of tax debt.
“Once in effect, the changes will benefit both countries. New Zealand stands to benefit through a reduction in tax
avoidance and evasion and an improvement in revenue collection – especially given the number of New Zealanders who live
in the United Kingdom.
“An amending protocol signed in London yesterday has started the updating process. The next step will be for each
jurisdiction to give legal effect to the changes, which in New Zealand’s case will require the signing of an Order in
Council,” he said.
The text of the amending protocol is available at www.taxpolicy. ird.govt.nz.
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