Cook Islands tax dodge closed

The days of New Zealand companies using the Cook Islands as a tax haven have come to an end, with the signing of an agreement in Rarotonga today.

Prime Minister John Key says the deal he has signed with his Cook Islands counterpart will prevent a replay of the winebox saga in the 1990s, where complicated arrangements with the Cooks saw the evasion of millions of dollars worth of tax being paid.

Key says the agreement will allow New Zealand tax authorities to seek information in the Cook Islands if someone is engaging in tax evasion.

New Zealand has signed similar agreements with the Netherlands and Bermuda.

-Newstalk ZB