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18 Sep 08 New Zealand to collect Australian tax debt

In a media release issued on 18 September 2008, the Assistant Treasurer, Chris Bowen, announced the entry into effect of the Assistance in Collection of Taxes Article in Australia’s tax treaty with New Zealand. This article signifies that the ATO and New Zealand’s tax authorities will work together to collect tax debt.

Australia and New Zealand have now exchanged diplomatic notes confirming that they have completed the relevant internal procedures required and consequently the Article shall have effect from 8 September 2008. The Article was inserted by the 2005 amending protocol, which focussed on strengthening the integrity aspects of the 1995 tax treaty. The protocol entered into force in January 2007, with the entry into effect of the Assistance in Collection of Taxes Article to take effect after both countries had put in place supporting domestic arrangements.

For a copy of the media release, No 2008/77, 18 September 2008, go here.

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