Governments and Regulators across the world have been looking to find ways to ensure that companies pay their fair share of tax. Due to the cross-border nature of tax evasion and avoidance, international cooperation in this field is particularly high on the political agenda.
One such area of cooperation is through International Financial Reporting Standards, such as IFRS 16 and 17. These initiatives aim to improve the financial services market globally and will impact the New Zealand insurance and wealth industry as it works to input into the design of new standards and meet them when introduced.
Closer to home in New Zealand, the Government has set up The Tax Working Group to look into the Future of Tax. The aim of the group is to provide recommendations to Government that would improve the fairness, balance and structure of the tax system over the next 10 years. The group recently issued an interim report on the review of the tax system.