Double tax deal under review

New Zealand and Australia are to review their Double Tax Agreement which could lead to a comprehensive renegotiation of the 1995 deal, Finance Minister Michael Cullen said today.

The regular review follows talks between officials in Wellington last month which looked at whether the agreement should be amended.

Dr Cullen said it was vital the agreement was regularly updated because of its importance to the trans-Tasman business relationship .

A decision on whether to re-negotiate the agreement would be made by both governments over coming months.

"And will in large parts depend on whether New Zealand wants to lower withholding rates," he said in a statement.

"The New Zealand Government is now reviewing its policy on this issue and will be seeking feedback from interested parties."

It was likely the agreement would be updated to deal with administrative issues such as exchange-of-information requirements as an interim measure, Dr Cullen said.

"That will be important, for example, for enabling Australia to have access to sufficient information to extend the benefits of its Wine Equalisation Tax Rebate to New Zealand wine producers who export to Australia."

- NZPA