Attorney Geoffrey Cone Responds to Foreign Trusts’ Feature Last Week

A simple look at the way the media has covered the foreign trusts in New Zealand makes it seem like a thriller entailing wealthy people, complex deals and exotic deals. The truth however, is more mundane to matters related to tax. New Zealand cannot be described to as a tax haven and will not feature amongst the known tax heavens. Tax havens have various distinct characteristics like imposing none or just nominal taxes, lacking in transparency and there being procedures and laws that prohibit exchanging of information with various other governments. New Zealand does not qualify on any of these grounds at all.

New Zealand was among the very first countries that were placed on the white list of OECD model agreement for the exchange of information related to tax matters. New Zealand has shown its leadership mantle on the tax transparency requirements placed on sharing of information with other governments. Resident trustees in New Zealand of any foreign trust are expected by the IRD to make a submission of the Foreign Trust Disclosure Form (IR607). They are also expected to keep other records and financial related records for purposes of New Zealand tax. The records are supposed to be in English and done in New Zealand, failure to which stiff and heavy penalties will result. The world standard money laundering legislation enactment brought about all these powers back in 2011. (Read More)

About Cone Marshall

Cone Marshall is a law office that operates in conjunction with various international families and advisors. The firm assists by establishing New Zealand companies, partnerships, trusts and offering international wealth planning opinion. This firm offers its services to family advisors, private banks, attorneys, private banks and other places outside New Zealand that require planning on behalf of their clients. Cone Marshall limited provides advice based on New Zealand trust, tax, succession, structuring and administrative services.

Karen Marshall is one of the advocates working at the Cone Marshall firm. She graduated from New Zealand’s University of Otago with an LLB. She had stayed in London for a period of about 10 years prior to joining the firm. In London, she was based in a large law firm based in the city and was attached to the firm’s Commercial Litigation department. She joined Cone Marshall back in November 2005 and became a Principal from April 2006. Karen has in her career advised two legislative trustee corporations on trustee’s powers and liability to get into compromises and offer security to third parties. This is in reference particularly to borrowing for investment purposes.