New tax information exchange agreement with the Netherlands on behalf of the Netherlands Antilles

New Zealand's first tax information exchange agreement, concluded with the Netherlands on behalf of the Netherlands Antilles, has entered into force.

Tax information exchange agreements are bilateral international treaties that enable tax authorities to exchange information on tax matters in order to assist each other in the detection and prevention of tax avoidance and evasion. The information that may be exchanged includes tax records, business books and accounts, bank information and ownership information.

Exchange of information arrangements already feature in the 35 double tax agreements to which New Zealand is party. However, the agreement establishing information exchange with the Netherlands Antilles is the first of a number of arrangements that New Zealand is seeking to establish outside of its double tax agreement network.

The agreement was signed on 1 March 2007 and incorporated into New Zealand law by Order in Council on 1 September 2008. The agreement entered into force on 2 October 2008 and will have effect from 1 January 2009.

The text of the tax information exchange agreement is published at www.taxpolicy.ird.govt.nz