Financial Secretary Speech on signing of TIEA

Financial Secretary Speech on the occasion of the signing of TIEA between Cook Islands & NZ

9th July 2009

Kia Orana, my name is Sholan Ivaiti, the Financial Secretary of the Cook Islands, and it is my pleasure to welcome our distinguished guests, and in particular:

• the Honourable John Key, Prime Minister of New Zealand;
•
to this important occasion in which the Cook Islands’ first ever Tax Information Exchange Agreement is going to be entered into with New Zealand. That historic agreement will be signed today and is further testament of the close and special relationship our countries enjoy. This duty has fallen on me as both the Finance Minister and Collector of Inland Revenue are overseas at present – which has saved one of them from giving this speech!

Today a Tax Information Exchange Agreement and a Supplementary Agreement on the allocation of taxing rights is being signed between the governments of the Cook Islands and New Zealand. These agreements have been several years in the negotiating, and a special thanks must be given to New Zealand Inland Revenue for shouldering the burden of drafting the agreements and necessary legislative amendments.

In February 2002, the Cook Islands advised the OECD of its commitment to international cooperation on tax matters and to the principles of transparency and effective exchange of information. Following this, negotiations were initiated in 2004 with New Zealand Inland Revenue for a Tax Information Exchange Agreement. These negotiations have now been concluded and we are here today to sign these agreements.

Entering into these agreements is further evidence of the Cook Islands’ commitment to the OECD’s efforts in creating a level playing field in the international arena, encompassing the principals of transparency and effective exchange of information for tax purposes. The Cook Islands supports recent calls by G20 leaders to take action against non-cooperative jurisdictions. For our part we see this as the first of many Tax Information Exchange Agreements to be entered into by us.

Its fitting that our first tax exchange agreement should be signed with New Zealand as we have always enjoyed a close relationship with New Zealand and this is reflected in the introduction within the Agreement which reads in part, “Having regard to the principles underpinning the special relationship of partnership and free association between the two Contracting Parties and desiring to facilitate the exchange of information with respect to taxes, have agreed as follows:”.

Finally, I’d like to thank the Honourable John Key for providing this advanced opportunity to sign the agreement, and without further ado invite him and our own Prime Minister, the Honourable Jim Marurai to come forward and sign their names to these Agreements.

Ends

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