Key said it was "utterly incorrect" that New Zealand was a tax
haven, adding he was open to changing rules around foreign trusts if
advised by a review or the OECD.
Tax authorities begin probes into some people named in Panama Papers leak(Reuters)
Wealthy Latin Americans are
using secretive, tax-free New Zealand shelf companies and trusts to help
channel funds around the world, according to a report on Monday based
on leaks of the so-called Panama Papers.
Pressure
is mounting on Prime Minister John Key to take action after local media
analysed more than 61,000 documents relating to New Zealand that are
part of the massive leak of data from Mossack Fonseca, a Panama-based
law firm. The papers have shone spotlight on how the world's rich take
advantage of offshore tax regimes.
Mossack Fonseca actively
promoted New Zealand as a good place to do business due to its tax-free
status, high levels of confidentiality and legal security, according to
a joint report by Radio New Zealand, TVNZ and investigative journalist
Nicky Hager.
Key said it was "utterly incorrect"
that New Zealand was a tax haven, adding he was open to changing rules
around foreign trusts if advised by a review or the OECD.
"If there's any need for change in this area, the government will consider it and if necessary, take action," Key told reporters.
The
government was asking the Ministry of Justice to move quickly on rules
already under consideration to tighten anti-money laundering
requirements for lawyers, real estates and accountants, he added.
Opposition Labour Party Leader Andrew Little said the government must act to "preserve
New Zealand's reputation by shutting down the system that sees our
country implicated in a massive global network of tax avoidance."
The
New Zealand government said last month it would begin a review of its
foreign trust laws after the Panama Papers highlighted vulnerabilities
in its legal framework that made it a possible link in international tax
avoidance structures because its foreign trusts are not subject to tax.
Green Party Co-leader James Shaw
said that review doesn't go far enough. He called on Key to "stop
defending the tax avoidance industry" and demanded a full inquiry.
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