Lawyer Geoffrey Cone is Responsive with Regard to the True Use of the Foreign Trust within New Zealand:
Where did persons come up with the notion that New Zealand is a tax haven? The foreign trust, inside of New Zealand, is not as lavish as an individual may first suspect. The media provides a great deal of drama, though, with regard to a very black and white subject.
It is important to clarify, the fact, that New Zealand is simply not a Tax Haven. The OECD keeps a list of such entities. New Zealand is not on the list. The main features of a tax haven include: Such entities do not impose taxation; they are somewhat vague, and the laws, relative to them, make information exchange between governments restrained. Certainly, New Zealand possesses none of the preceding characteristics. Additionally, there is no such thing as an inconspicuous banking industry, operating inside of New Zealand.
The example of true transparency is presented by the 2002 OECD Agreement on Exchange of Information on Tax Matters. The agreement is supportive of a global exchange of information in order to properly enforce domestic tax regulations. The nation of New Zealand, was one of the first nations placed on the white list of the OECD, relative to adequately establishing a global agreed upon standard of tax.
New Zealand is highly transparent, and demonstrates, as much, in its ability to lead, in the administration of foreign trusts. Additionally, it presents all of the necessary requirements to trustees. The preceding actions make it possible for New Zealand to communicate, fully, with regard to its foreign trust setup, with other countries—requesting information.
New regulations were set forth in 2006, by Michael Cullen, after considerable thought and review. Mr. Cullen consulted with all of the appropriate experts.
A resident of the New Zealand nation is required, by the IRD, to submit a disclosure. The foreign trust documentation is form IR607. This form is kept with financial records and used for purposes of tax.
Records, kept with the above form, by the way, include the trust deed, details of the settlement, distributions– inclusive of the recipient’s name and residential location, information about the trust’s assets and liabilities; funds that the trustee receives and expenditures.
When the trust is considered a business entity, the responsible person is required to keep data with regard to the system of accounting as well as a relative Chart of Accounts.
The records mentioned, above, are maintained inside of New Zealand. The records, further, must be in English. When neither of the two conditions are met—heavy penalties can result.
The preceding requirements, were further intensified with enactment of the World Standard Money Laundering legislation—which came about in 2011.
Inside the majority of nations, an individual who is in the process of trust settlement is required to report the settlement of funds to that of its own officials, and banks. When the preceding is paired with the settlers of data, reporting details, inside their own respective nations, the information, provided, is quite enough to give authority figures adequate information, in order to request further information as to a certain transaction or a trust—in general.
The nation of New Zealand has thirty-nine agreements—with regard to tax. The agreements are designed in order to reduce tax, with regard to trade as well as investment. Further, the agreements are preventative, from the standpoint that they do not allow activities such as evasion of taxes to occur.
The country, too, has twenty some tax information exchange agreements. The information exchange agreements are with that of outside nations. The agreements present a limited form of a double-tax agreement. The agreements are used in assuring that no tax avoidance occurs.
New Zealand, most recently, has now signed a Multi-lateral Convention relative to Mutual Administrative Assistance with regard to Matters of Tax. This type of transparency, certainly, does not suggest actions relative to the nation being a tax haven.
Despite most individuals’ perceptions, the majority of Foreign Trusts are used in way of asset protection as well as succession planning: not in the way of tax planning. The preceding is true with regard to New Zealand. The growth of foreign trusts, within New Zealand, has occurred, due to the fact that the nation has been recognized, on a global basis, as a reliable venue, wherein, sound regulations, and a judiciary, of high-standards, and integrity exists.
The great majority of the providers of service are accountants and lawyers. These individuals work, in partnership, with other like professionals, located within other nations.
New Zealand is not in competition, therefore, with any tax haven. New Zealand competes with nations, such as the United States, and Britain, where tax transparency is in existence, as it regards foreign trusts. New Zealand, summarily, is a nation operating in a well-established, well-defined manner as it pertains to making use of the Foreign Trust.
Notes Regarding Cone Marshall:
Geoffrey Cone and Karen Marshall serve as Lawyers in of New Zealand. The two individuals established the law firm, Cone Marshall, in 1999. Cone Marshall is regarded as the only firm, in the nation, that specializes in tax trust management. The location of the firm is Auckland, New Zealand.
Karen Marshall and Geoffrey Cone, provide a great deal of experience, to their clients, as it applies to the field of law.
Karen Marshall has the responsibility, afforded to her of providing expert legal consultation, relative to statutory trustee companies. She is the Principle at the firm. She is very knowledgeable, too, with regard to matters of law, regarding trust management.
Geoffrey Cone is the firm’s co-founder. Geoffrey Cone is defined as a tax lawyer. Prior to his engagement at The Cone Marshall Law Firm, Geoffrey Cone, held a post in a British law firm. He later made the move to Auckland, New Zealand, in order to start his own law firm.
Geoffrey Cone has been providing his client-base with trust planning and trust management services, since he first began his tenure as a lawyer.
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