McClay concludes European mission

FILE

Rotorua MP Todd McClay has concluded a European lobbying mission by signing a tax agreement in Paris to focus on tax avoidance by multinationals.

He visited in his capacity as Minister of Revenue and Associate Minister of Trade.

The OECD's Multilateral Competent Authority Agreement brings New Zealand closer to participating in the global standard for an automatic exchange of information between tax authorities.

Signing the agreement is a necessary and important step in New Zealand's implementation of the new global standard for Automatic Exchange of financial account information in tax matters, commonly referred to as AEOI.

"The AEOI, announced by G20 leaders in 2013 will be a significant means for improving information to help discover and stamp out tax evasion," Mr McClay said.

"This agreement means we will be better able to target multinationals who elude tax in New Zealand whilst not placing an unnecessary burden on those who are meeting their tax obligation.

"It complements the work we are separately undertaking with the OECD to tackle the problem of base erosion and profit shifting (BEPS) by multinationals," says Mr McClay.

Prior to the signing in Paris overnight, Mr McClay had been lobbying European capitals promoting a New Zealand-EU trade and investment agreement.

He visited the EU's capital Brussels, London, Paris and Madrid for high-level ministerial talks as well as discussions with trade-related policy think tanks and private sector representatives.

"There is a growing appreciation in Europe of the role that high quality trade agreements play in boosting economic development and jobs.

"A trade and investment agreement with the EU would have significant benefits for both New Zealand and European citizens," Mr McClay said.

Mr McClay met with the newly appointed UK Minister of State for Trade, the Rt Hon Lord Francis Maude, Spain's Finance Minister Christobal Montoro and Spanish Secretary of State for Trade, Jaime Garcia-Legaz, and the French Secretary of State for Foreign Affairs responsible for Trade, Matias Fekl.