Tuesday, June 20, 2017
New Zealand trusts had previously been well-known for their desirable quality of being a haven for hiding assets. The island-nation recently modified its laws to compel all foreign trusts to register, provide details of who benefits from the trust, and designate who controls the trust. Since there are a number of legitimate reasons for an individual to want to hold an offshore, tax-free trust, the expectation was that the requirement to register would be of little issue. As of now, most trusts have failed to register and many have abandoned the country. This is a strong indicator that many of these trusts were being used illegitimately to hide assets.
See Trust the Kiwis, Tax Justice Network.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.