Tax laws will meet EU aims

Thursday November 30, 2017 Written by Published in Crime

Finance minister Mark Brown has written to the chairperson of the European Union’s Code of Conduct Group committing the Cook Islands to changing its legislation to meet the EU’s objectives of ensuring international tax transparency.

 

Brown said he welcomed the commitment as further proof the Cook Islands is at the forefront of introducing anti-tax base erosion measures.

“We now have automatic disclosure of financial information to the United States and from September next year we will have automatic disclosure of financial information to over 100 countries under the Common Reporting Standards, an initiative of the OECD.”

The EU is concerned that countries with differential tax regimes have an unfair competitive advantage for business over countries with uniform taxes for those who operate within their borders.

Brown said the Cook Islands’ relationship with the EU was important.

“The EU has provided valuable assistance to the Cook Islands over many years through the European Development Fund and other initiatives.

“I concur with the view expressed in 1997 by former prime minister, the late Sir Geoffrey Henry, that it is inappropriate for the Cook Islands to act in a manner which might undermine the tax bases of countries that have been generous in giving their support to us.

“It is in that spirit we have made this commitment.”

            - Release

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