Compliance focus 2009-10: Introduction
Collaboration and global networks
Global collaboration in tax administration is not a passing trend. For a small country like New Zealand, it is a vital element in ensuring we keep up with emerging risks and apply best international practices.
We are strengthening our collaboration with other New Zealand-based agencies and industry groups to improve early detection of tax avoidance schemes and compliance issues. We also work closely with other revenue agencies and international organisations.
Globalisation has increased the ability of people to move goods, services, people and capital across borders. Historically, substantial cross-border trade has been a business for major multi-national companies. However, globalisation, supported by technology, makes it possible for smaller businesses throughout the world to compete on a global basis.
In recognition of this, our ever widening network of tax treaties with international tax authorities supports our early detection, sharing of information and collection efforts. For example, our reciprocal agreement with the Australian Child Support Agency enables us to collect outstanding child support from non-custodial parents living in Australia.
Provision for helping to collect outstanding tax debt is included in tax treaties New Zealand has with a number of countries, including the United Kingdom, the Netherlands and Poland. Since September 2008 we have been able to send tax debt cases to the Australian Taxation Office. Under the arrangement, they collect outstanding tax debt owed by New Zealanders now living in Australia, and we do the same for them.
We are getting better quality and increased quantity information of than ever before through our network of tax treaties. We are aware that some offshore activities and investments are operated on the assumption that we may not be able to get information from other countries. These assumptions are no longer safe in today's environment of international cooperation.
Date published: 09 Jun 2009
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