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Panama leak shows New Zealand’s ‘shameful’ tax haven status
Wellington :New Zealand is shamefully complicit in international tax avoidance schemes through its lax trust law, experts and lawmakers said on Monday following a massive document leak from a Panamanian law firm.
The papers leaked from law firm Mossack Fonseca, which specialised in providing financial anonymity to the world’s rich, showed a connection to foreign trusts in New Zealand, Xinhua reported.
It was reported that Maltese Energy Minister Konrad Mizzi and the prime minister’s chief of staff, Keith Schembri, were among those who set up trusts in New Zealand.
Massey University taxation specialist Deborah Russell said the leak shed light on New Zealand’s role as an international tax haven.
“It’s shameful for New Zealand to be caught up in international tax avoidance,” Russell said.
“The loophole in our laws that allows New Zealand foreign trusts to escape taxation has been known about for years, but nothing has been done to shut it down. This makes us complicit in schemes to avoid tax.”
She believed it would be comparatively easy to shut the loophole down by authorising the government’s Inland Revenue Department (IRD) to share information about foreign trusts — including the identities of people putting property into trusts — with the tax authorities of other countries.
“This would enable other countries to pursue people who are sheltering property and income in New Zealand foreign trusts,” said Russell.
Opposition lawmakers said the revelations of rich foreigners hiding their wealth in New Zealand had undermined the country’s reputation for honesty and transparency.
The Green Party said the IRD had warned the government in 2013 about the high risks of New Zealand foreign trusts, but the government had ruled out any reform to date.
Green Party finance spokesperson Julie Anne Genter cited an IRD e-mail dated March 24, 2016, that said: “In relation to the foreign trust tax rules, given wider government priorities the government will not be considering regulatory reform of the rules at this stage.”
“How can we as a country work collaboratively with other countries to try and clamp down on tax avoidance by multinational companies while knowingly facilitating tax avoidance through our lax foreign trust laws?” Genter asked in a statement.
Revenue Minister Michael Woodhouse defended New Zealand’s “very sound tax system with world-class tax rules.”
“We tax people who live, work and do business here. We don’t tax foreign income earned by foreigners. The same principles apply to trusts, and have done since 1988,” Woodhouse said in a statement.
“It is ridiculous to suggest that New Zealand is a tax haven, as they thrive on secrecy.”
New Zealand had a strong tax treaty network with the express purpose of discovering and preventing tax avoidance by exchanging information between tax jurisdictions.
The Organisation for Economic Co-operation and Development (OECD) group of developed countries had looked at New Zealand’s foreign trust rules in the past and had no concerns with them, said Woodhouse.
“The tax treatment of foreign trusts may come up in the OECD’s Base Erosion and Profit Shifting work programme in which case we would look at our own rules in the context of everyone else’s,” he said.
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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