Inland Revenue will receive more information about US multinationals operating in New Zealand following the signing of a new bilateral arrangement with the US Internal Revenue Service to share country-by-country reports.
Revenue Minister Judith Collins says this is great news as it means Inland Revenue will have better information about how multinationals allocate profits from their operations here.
“This will further enhance Inland Revenue’s risk assessment processes to make sure that the right amount of tax is being paid,” she says.
The arrangement will see country-by-country reports exchanged between the two countries on an annual basis starting from 2018.
Inland Revenue will reciprocate by sharing information on New Zealand-based multinationals with the IRS.
“The exchange of country-by-country reports is a key part of the OECD’s work on base erosion and profit shifting so I’m pleased to see we’ve been one of the first to sign a bilateral arrangement with the US,” Ms Collins says.