Immigration Minister Michael Woodhouse today signed a Working Holiday Scheme with Luxembourg during a meeting with the Minister of Foreign and European Affairs of Luxembourg Jean Asselborn in Wellington.

“This is Luxembourg’s first Working Holiday Scheme and will allow up to 50 young people from New Zealand and Luxembourg to live and work in each other’s countries,” Mr Woodhouse says.

“We are pleased to be the first country to sign a Working Holiday Scheme with Luxembourg. This reflects our positive relationship, which has been developed and strengthened through our wider interactions with the European Union.

“Working Holiday Schemes provide young New Zealanders with opportunities to live and work in Europe, while working holiday makers from countries like Luxembourg contribute positively to New Zealand through tourism, cultural, and interpersonal links.”

The Working Holiday Scheme will be open to 18-30 year olds and is expected to start in April 2017.

A strategy used by some large multinationals to shift profits overseas and minimise their New Zealand tax is the focus of international tax proposals released for consultation today, says Revenue Minister Michael Woodhouse.

“A discussion document which proposes that New Zealand adopt the OECD recommendations on hybrid mismatch arrangements was today released for consultation,” says Mr Woodhouse.

“Our international tax rules are sound, but the Government considers that New Zealand’s rules on hybrids can be stronger.

“Hybrid mismatch arrangements are one of the base erosion and profit shifting strategies used by multinationals to exploit the difference between how two countries might treat a cross-border transaction, resulting in less tax.”

The OECD recommendations remove the advantage of using hybrids.

“It is important that our rules complement those of other countries, particularly Australia and the UK who have both announced their intentions to adopt the OECD recommendations in this area.”

Submissions on the proposals close on 17 October 2016. The discussion document is available at www.taxpolicy.ird.govt.nz.

A Bill that enables territorial authorities to decide whether shops in their district can trade on Easter Sunday has passed its third reading in Parliament this afternoon.

“The Shop Trading Hours Amendment Bill is a pragmatic and well-balanced Bill which provides choice for local communities on whether or not to allow shop trading on Easter Sunday while also improving protections to all shop employees,” Mr Woodhouse says.

“All shop employees will now have the right to refuse to work on Easter Sunday without being required to give a reason. They will also be able to take a personal grievance if they are treated adversely or compelled to work on Easter Sunday.

“This acknowledges the significance of Easter Sunday for many people, and that some employees may want to spend the day with their families instead of working.”

Under the process for a local policy change for Easter Sunday shop trading, territorial authorities will:

only be able to determine whether to allow shop trading on Easter Sunday be able to determine whether to allow shop trading on Easter Sunday across their entire district or in certain limited areas need to consult their communities using the Special Consultative Procedure on any local policy that would allow shop trading on Easter Sunday have to review the first local policy created for Easter Sunday shop trading once no later than five years after its adoption.

Further information is available at www.mbie.govt.nz/info-services/employment-skills/legislation-reviews/easter-sunday-shop-trading

Cabinet will consider a recommendation to allow Inland Revenue to waive interest on late payments of taxation for businesses affected by the Havelock North gastroenteritis outbreak, announced Revenue Minister Michael Woodhouse and Small Business Minister Craig Foss.

“Inland Revenue already has the ability to waive penalties for late payments, but due to the impact of the outbreak on businesses, Cabinet will consider enabling interest to be waived for late PAYE and provisional tax payments, due later this month,” Mr Woodhouse says.

“In particular, this recognises that affected people should be looking after themselves and their families first and foremost. 

“It is also about showing flexibility and understanding during a difficult time and is comparable to the government’s response to the Manawatu-Whanganui floods last year when Inland Revenue was given the same power.”

“This recommendation acknowledges the physical impact the outbreak is having on local businesses and goes some way to providing support and relief,” Mr Foss says.

“Earlier this week I called on landlords, banks and unaffected businesses — particularly large businesses — to be generous and accommodating toward other smaller businesses.

“It’s been great to see so many local companies rally around their community and provide goods or services free-of-charge.”

Further details will be released following Cabinet’s consideration next week.