Revenue Management News

Revenue Management News

OECD Tax News Alert

The Cook Islands become the 106th jurisdiction to join the most powerful international instrument against offshore tax evasion and avoidance

 28/10/2016 –Today at the OECD Headquarters in Paris, Mr. Andrew Haigh, Collector of Inland Revenue of the Cook Islands, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

The Convention is the most powerful instrument for international tax cooperation. It provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It guarantees extensive safeguards for the protection of taxpayers' rights.

 The Convention, together with the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, which the Cook Islands signed in October 2015, will enable the Cook Islands to fulfil their commitment to begin the first of such exchanges by 2018.

 The Convention can also be used to swiftly implement the transparency measures of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project such as the automatic exchange of Country-by-Country reports under Action 13 as well as the sharing of rulings under Action 5 of the BEPS Project. The Convention is also a powerful tool in the fight against illicit financial flows.

 The Convention was developed jointly by the OECD and the Council of Europe in 1988 and amended in 2010 to respond to the call by the G20 to align it to the international standard on exchange of information and to open it to all countries, thus ensuring that developing countries could benefit from the new more transparent environment.

 The 106 jurisdictions participating in the Convention can be found at: www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf

 Media queries should be directed to Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration (+33 6 26 30 49 23).


Import Entry Transaction Fee

Section 64 of the Customs Revenue and Border Protection Act 2012 and Regulations 33 require an Import Entry Transaction Fee (ITF) to be paid to Customs when an import entry is filed.

The Import Entry Transaction Fees are payable to Customs primarily to meet the maintenance fees payable on the electronic import entry processing system, as well as to assist in meeting costs and expenses incurred by Customs in undertaking the functions and duties relating to the importation of goods.

 

From 1 July 2016 the transaction fee, plus VAT, will be collected on all import entries lodged with Customs. 

The transaction fees are as follows:

               CUSMOD Electronic Import Entry:               $10 (plus VAT) per entry        $11.50

               Manual Import Entry:                                      $20 (plus VAT) per entry        $23.00

For deferred import entries the transaction fee will be collected and paid on the 20th of the following month.

Use of the updated CICS 056 and 056A

Section 62 of the Customs Revenue and Border Protection Act 2012 and Regulation 31 requires goods imported into the Cook Islands entered on a Customs Import Entry Form.

Forms CICS 056 and 056A the updated Import Entry Forms.

From 1 July 2016 we will no longer accept any other Import Entry Forms.

E Tax Online Official Launch

The Minister of Finance, the Honourable Mark Brown launched the Cook Islands online E Tax lodgment system on Friday, 6 November 2015 at the National Auditorium.

The E Tax online system allows taxpayers to easily comply with their tax obligations by making their tax records readily accessible and providing the ability for taxpayers to file and pay their VAT and PAYE returns and make payments electronically. The E Tax system also allows tax agents to access limited information about their clients. In the coming year Revenue Management intend to extend the E Tax service to include the payment and lodgement of Income Tax, Company Tax and Withholding Tax returns. This online service will allow all taxpayers, whether resident or non-resident for tax purposes, to have greater access to their tax records and file and pay their taxes anywhere in the world.

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