Cook Islands - Korean Tax agreement signed

On 31 May, 2011, the Deputy Prime Minister and Minister of Foreign Affairs & Immigration, Hon Tom Marsters and Republic of Korea Foreign Minister Kim Sung-hwan signed a Tax Information and Exchange Agreement (TIEA).
The TIEA provides for the exchange of information that is relevant to the administration and enforcement of the domestic tax laws of the Cook Islands and the Republic of Korea. Information that is relevant to the assessment and collection of taxes, the recovery and enforcement of tax claims and the investigation of tax matters must be provided by each country upon request.
“The signing of the Cook Islands-Republic of Korea TIEA will encourage economic transparency and accountability in both our countries,” said the DPM. “The Cook Islands Government is convinced that many opportunities exist to strengthen co-operation and build partnerships with the Republic of Korea, the signing of this TIEA is another positive step in that direction”.
The DPM was in Korea to represent Government at the Korea-Pacific Islands Countries Foreign Ministers Meeting.
The TIEA is part of the Cook Islands meeting its international obligations with the OECD. Expected to impact the international financial services industry more than at the domestic level, the Cook Islands is committed to maintaining its status as a well-regulated jurisdiction. “While we do not have many clients from Korea, the industry welcomes this formal agreement,” says Jenner Davis, CEO of the Cook Islands Financial Services Development Authority, “It will assist in our efforts to expand into new client markets.”
The TIEA signed with Korea is the 15th TIEA for the Cook Islands and the 12th with an OECD member country, with several more agreements either ready to be signed or in the drafting process. To give effect to this and other TIEAs, amendments will soon be made soon to the Income Tax Act.
The Cook Islands awaits its Peer Review by the OECD Global Forum in the 2nd half of 2011 and the signing of this TIEA is one more step towards ensuring a positive review. This week, Minister of Finance Mark Brown attended the 3rd Global Forum on Tax Transparency in Bermuda with Andrew Haigh of Revenue Management to help prepare the country for its upcoming review.

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