New Zealand at heart of Panama money-go-round

Wellington

Pressure is mounting on Prime Minister John Key to take action after local media analysed more than 61,000 documents relating to New Zealand that are part of the massive leak of data from Mossack Fonseca, a Panama-based law firm. The papers have shone spotlight on how the world’s rich take advantage of offshore tax regimes.

Mossack Fonseca actively promoted New Zealand as a good  place to do business due to its taxfree status, high levels of confidentiality and legal security, according to a joint report by Radio New Zealand, TVNZ and investigative journalist Nicky Hager.

Key said it was “utterly incorrect” that New Zealand was a tax haven, adding he was open to changing rules around foreign trusts if advised by a review board. The government was asking the Ministry of Justice to move quickly on rules already under consideration to tighten anti-money laundering requirements for lawyers, real estates and accountants, he added.

The New Zealand government said last month it would begin a review of its foreign trust laws after the Panama Papers highlighted vulnerabilities in its legal framework that made it a possible link in international tax avoidance structures because its foreign trusts are not subject to tax.

Governments across the world have begun investigating possible financial wrongdoing by the rich and powerful after the leak of more than 11.5 million documents from Mossack Fonseca.