New Zealand’s trade deal with the European Union is not in jeopardy, says Government Minister Gerry Brownlee – despite the EU’s investigation into tax havens.
The Panama Papers saga highlighted how the rich could hold money in foreign countries and avoid paying tax. Some believed New Zealand was being used in such a way.
Since then, the EU Parliament set up a committee of inquiry into tax evasion and money laundering, and will report back by next June.
Seeing as this Government wasn’t even aware (although it turned out they were lying later) that China was threatening a trade war, Gerry not worrying doesn’t sound comforting enough.
John Key built NZ intro a tax haven and had his private lawyer who uses tax havens muscle in on the Revenue Minister to ensure no IRD crack down occurred.
After being outed by the Panama Papers, Key rushed in a tax expert who pointed out how weak NZs laws had become. This was a major political embarrassment that most sleepy hobbits didn’t notice, and the last thing National want is NZers being reminded of how Key built NZ into a tax haven and that it might still have political ramifications.
Remember how our PM was purposely targeted in the release? Wonder why that lead hasn’t been followed up? I think that no matter how much the Government hose this down, a couple of months before the next election in 2017 there may be some nasty surprises from the Panama Papers erupting within NZ.