New Zealand. Reports

Revenue Minister of New Zealand, Michael Woodhouse, has said that recently signing agreement on the report exchange between countries will be increase country's tax collection capability.

This agreement that provide country-by-country exchange of financial reports was recently signed by officials from New Zealand, Canada, China, Iceland, India, and Israel, totally 39 countries.

Woodhouse also said that some large multinationals often use some difficult financial scheme, what helps them to escape of paying tax, called base erosion and profit shifting. This new country-by-country reporting agreement is on the centre of financial activity, allow to participants exchange information of multinationals activity.

«Under that agreement, large multinationals will have to provide information relating to economic activity, including the global allocation of income and taxes paid," the Revenue Minister said. "Each revenue authority collecting this information to exchange with other countries. This also will show us a full picture of every multinational financial activity. According to this agreement it will be easier to control any tax wrongdoing».

The agreement can ensure us that large multinationals pay their fair share of tax.

Author: Olena Kutova

senior lawyer of the Finance Business Service company

Free Trade Agreement

Representatives of the European Free Trade Association (EFTA) - Iceland, Liechtenstein, Norway and Switzerland - and the Philippines signed a free trade agreement.

The agreement was signed April 28, 2016 in the Swiss capital city of Bern.

This agreement is based on a joint declaration on cooperation signed between EFTA and the Philippines in June 2014 in Iceland. And the negotiations on a free trade agreement began in March 2015.

The agreement is comprehensive, covering: trade in goods, including industrial and agricultural, fish and other marine products; rules of origin; trade facilitation; sanitary and phytosanitary measures; technical barriers to trade; trade in services; investments; competition; protection of intellectual property rights; government procurement and sustainable development.

According to the European Association of Free Trade, foreign trade in goods between the EFTA and the Philippines and increased by an average rate of 11 percent between 2005 and 2015.

In 2015, total merchandise trade between EFTA and the Philippines was estimated at $ 863 million, with exports to the EFTA Philippines in the amount of $ 407 million, and exports from the Philippines - $ 456 million.

EFTA currently has 27 free trade agreements with 37 partners who are not members of the EU.

Author: Olena Kutova

senior lawyer of the Finance Business Service company