29 Oct 099 Bilateral TIE agreement signed with Cook Islands
In a media release issued on Tuesday 27 October (in the Cook Islands) and Wednesday 28 October (in Australia), the Assistant Treasurer, Senator Nick Sherry, announced that he and the Cook Islands Deputy Prime Minister, Minister for Finance, and Minister for Foreign Affairs, Sir Terepai Maoate KBE, met in Rarotonga, to sign a comprehensive bilateral tax information exchange (TIE) agreement between Australia and Cook Islands.
"G20 Leaders made it abundantly clear at the recent Pittsburgh Summit, that the era of tax havens is over. Australia, as chair of the Global Forum covering tax transparency issues, has led the way in delivering on this important G20 priority, and today we make another contribution by signing a comprehensive tax information exchange agreement with Cook Islands, one of the key offshore financial centres in our own region," said the Assistant Treasurer.
Cook Islands is the ninth jurisdiction to sign a tax information exchange treaty with Australia in recent months.
An agreement on the allocation of taxing rights over certain income of individuals has also been signed. This agreement will eliminate double taxation of certain income derived by retirees, government employees and students. It will also establish an administrative mechanism to resolve transfer pricing disputes between taxpayers and the revenue authorities of Australia or Cook Islands.
The Minister said that both agreements will enter into force after both countries have completed their relevant domestic requirements and legislation for this purpose will be introduced into the Australian Parliament as soon as practicable.
For a copy of the Minister's media release, No 2009/082, 27/28 October 2009, go here
For a copy of the agreements, go here