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2008 media releases

Tax authorities work together to stop international tax evasion
27 February 2008

Inland Revenue is working with tax administrations in Australia, the United Kingdom, the United States of America, Canada, France, Italy, Sweden, and other countries concerning Liechtenstein bank accounts being used to avoid or evade tax. All are member countries of the OECD's Forum on Tax Administration (FTA).

Inland Revenue is getting more and better information than ever before through a network of tax treaties, says Commissioner Robert Russell.

"We are aware that some offshore activities and investments of New Zealand taxpayers are operated on the assumption that Inland Revenue may not be able to obtain information from sources in other countries.  These assumptions are no longer safe in today's environment of international co-operation."

People who have undeclared offshore income, who contact Inland Revenue before they are the subject of an audit, and make a full and true disclosure, may be entitled to reductions in shortfall penalties under voluntary disclosure rules.

All the countries now working together were represented at the OECD's FTA September 2006 meeting in Seoul, Korea when Tax Commissioners from more than 30 countries identified the use of tax haven bank accounts as a major threat to successful tax administration.

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Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.

P O Box 2198
Wellington 6140
New Zealand


Date published: 27 Feb 2008

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