Cook Islands: Ministry of Finance

Cook Islands Ministry of Finance News

SALE BY TENDER FOR GOVERNMENT VIP VEHICLES

The Government of the Cook Islands seeks suitable companies, groups or individuals to submit a tender for the Sale of Assets of 20 vehicles. These vehicles will supplement the existing private rental fleet and government fleet which is being used for the transportation of a number of VIPs who will be attending the activities celebrating 50 years of Self Government.

All vehicles will be registered prior to use and sold on the basis that they will be made available for transportation of VIPs during the 50 year celebrations with a number also being required for the combined Pacific Forum Economic and Trade Ministers (FEMM and FTMM) to be held in the week 26 to 31 October 2015. All vehicles will be sold as new by tender on an as-is where is basis.

Tenderers may tender for one or more vehicles for sale by tender Highest or any tender may not necessarily be accepted.

SUBMISSION BY TENDER

Tenders are to be submitted in hard copy, packaged and labelled "CONFIDENTIAL" in a sealed envelope marked:

Ministry of Finance and Economic Management
1415xx - Government Celebration Vehicles
Tender 4:00 pm Friday 31 July 2015

The tender box will be located at Office of the Public Sector Commission, Old Philatelic Building (Ground floor) Avarua.

CAR TYPES                                       NO.    COLOUR                                     BROCHURE                                                                         

Hyundai Elantra Elite                          9       Black x 4, White x 2, Red x 2   http://www.hyundai.co.nz/new-cars/small-cars/elantra/

Hyundai Sonata Elite                          5       Black x 4, Blue x 1                     http://www.hyundai.co.nz/new-cars/sedan-wagon/sonata/

Hyundai IX 35 2.0 Litre 2WD Std      4       Black                                             http://www.hyundai.co.nz/new-cars/suv/ix35/

Hyundai IX 35 2.0 Litre  2WD Elite   2       Black                                             http://www.hyundai.co.nz/new-cars/suv/ix35/

For further information in regards to the Sale by Tender for Government VIP Vehicles please contact:

Mr Russell Hynd
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: +682 29511
Tenders Close: 4:00 pm Friday 31 July 2015

[END]

AMENDMENTS TO THE INCOME TAX ACT

On 19 June 2015 the Parliament of the Cook Islands passed amendments to the Income Tax Act 1997.

PERSONAL INCOME TAXATION RATES

From 1 January 2016 the Cook Islands will reduce personal income tax.

                                          Current Rate         From 1 January 2016

             -        11,000                  0%                         0%

  11,001        30,000             18.5%                  17.5%

  30,001        80,000             27.5%                  27.5%

  80,001        and over         30.0%                  30.0%

Minister for Finance, the Honourable Mark Brown pointed out the Government’s desire to reduce income taxes on income earners in the Cook Islands.  

“The Government is keen to reduce income tax in a considered manner, a person on $26,000 per annum (or $500 a week) will receive a further reduction on their annual personal income tax burden by 150 dollars a year on 1 January 2016 and a further 75 dollars on 1 January 2017. 

By 1 January 2017 that individual would have received a total reduction of $1,450 per annum since the commencement of our tax reforms began.”

Minister Brown pointed that the Cook Islands was a low tax jurisdiction on any measure and the Government will continue to aim to keep overall taxation levels low and aim to ensure the burden is spread evenly across society. 

AUTOMATIC EXCHANGE OF INFORMATION 

In his speech to Parliament the Minister pointed out that the Cook Islands would move towards signing the OECD's Multilateral Competent Authority Agreement which will see the Cook Islands move towards the automatic exchange of taxation information.  

Financial Secretary, Richard Neves outlined the importance of the Cook Islands signing the Multilateral Competent Authority Agreement, which was recently signed by both New Zealand and Australia.

“The Ministry of Finance and Economic Management will outline to Cabinet a proposed timeline, but that the Cook Islands will be exchanging information prior to September 2018.  There will need to be significant effort in modernising systems and processes which we need to start planning for now and technical assistance and increased investment will be required.” 

Currently, the Cook Islands has twenty Tax Information Exchange Agreements (‘TIEA’)s signed with a number of nations, including a number from the European Union and these are listed on the MFEM website.

RMD NUMBERS AND BANK ACCOUNTS 

It is a requirement for anyone with a bank account to provide the bank with an RMD number. From 1 January 2016 a withholding tax of 30 per cent will be applied on interest paid to account holders who have not provided an RMD number to their bank.  This is not a final tax, the taxpayer will be able to offset the tax paid against their annual income tax assessment.

Additionally, banks will now be required to provide to their customers no later than 15 February of each year, an interest earnings certificate for the previous income year (i.e. 1 January to 31 December) showing all amounts of interest paid to the individual customer.

COOK ISLANDS ADMINISTERED TRUST 

Amendments to the Income Tax Act 1997 clarify that income from a Cook Islands administered trust is taxable only to the trustees and not again, once distributed, to the beneficiaries. Income from foreign trusts will continue to be taxable to Cook Islands beneficiaries.

[END]

20150619

Signing of TIEA between the Cook Islands and Canada

On Monday, 15th June 2015 the Cook Islands and Canada signed a Tax Information Exchange Agreement (TIEA) in Wellington. The Cook Islands High Commissioner His Excellency Tekaotiki Matapo signed the Agreement on behalf of the Cook Islands, with the Canadian High Commissioner Her Excellency Caroline Chretien signing on behalf of Canada.

The signing is testament to the commitment of both countries to working with the global community to promote international cooperation in tax matters. The TIEA allows for either Party to request information from the other country where a specific taxpayer is under investigation, and where there is reason to believe that relevant information is held in the other country. The Agreement strikes a balance between privacy and the need for jurisdictions to enforce their tax laws.

These signings were an important step for the Cook Islands in demonstrating its international cooperation on tax matters and to the principles of transparency and effective exchange of information. The entering into of this agreement is further evidence of the Cook Islands’ commitment to the OECD’s efforts in creating a level playing field in the international arena, encompassing the principals of transparency and effective exchange of information for tax purposes.

This signing makes a total of 20 TIEAs entered into by the Cook Islands, and demonstrates that the Cook Islands has become a leading jurisdiction in the fight against tax evasion. The Cook Islands recently underwent a Phase 2 Peer Review by the Global Forum on Transparency and Exchange of Information for Tax Purposes, which resulted in a positive report for the Cook Islands.

Photo 2 of TIEA signing

BUDGET PAPERS AVAILABLE ON THE MFEM WEBSITE

The suite of 2015/16 budget papers is now available on the MFEM website – these include:

  • The Budget Policy Statement
  • Budget Book 1 – Appropriation Bill (Appropriations and Commentary
  • Budget Book 2 – Ministry Budget Statements
  • Budget Book 3 – Capital Plan

http://www.mfem.gov.ck/budget-and-planning/3-treasury/budgets/141-all-budget-download

MFEM PUBLISH STANDARD AND POOR’S CREDIT RATINGS ANALYSIS ON WWW.MFEM.GOV.CK

Standard and Poors are a global rating service agency who provide sovereign ratings services.
 
Standard and Poors have provided ratings of the Cook Islands for a number of years and these reports are normally available through a subscription service.
 
The Cook Islands Ministry of Finance and Economic Management has recently come to an arrangement with Standard and Poors Inc. to provide their full analytical report on the Cook Islands on the MFEM website.
 
The Standard and Poors Credit ratings are an independent assessment on the public financial position of a sovereign, with a particular focus on credit worthiness of the jurisdiction.  
 
Such reports provide an independent overview of a country’s public finances and inform potential investors and can influence confidence in an economy.   
 
The last sovereign credit rating of the Cook Islands rating was provided on 29 March 2015 and remained unchanged at B+/Stable/B.
 
The reports are kept at http://www.mfem.gov.ck/sovereign-credit-ratings, and a historical series will be updated shortly.
 
The Standard and Poors website provides further details on the manner by which ratings are conducted and what they mean http://www.standardandpoors.com.
 
 
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20150612
 

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