Reportedly, New Zealand is being considered as the heart of a tangled web of shelf companies and trusts that are being used by wealthy Latin Americans to channel funds around the world.

Over 61,000 documents, according to the media, relating to New Zealand, are part of the massive leak of offshore data from Mossack Fonseca, a Panama-based law firm.

The Panama papers issue has proved that, how the rich people around the world take advantage of the offshore tax regimes.

In 2013, using New Zealand as one of its new jurisdictions, Mossack Fonseca ramped up its interest, actively promoting the South Pacific nation as a right place to do business, due to its tax-free status, high levels of confidentiality and legal security.

According to a report, co-founder and director of accountant firm Bentleys New Zealand, Robert Thompson was the main contact of Mossack Fonseca in New Zealand.

As per the report, in over 4500 Panama paper documents, Thompson was listed.
Speaking on the issue, Thompson said, “I think the assumption that all New Zealand foreign trusts are being used for illegitimate purposes is unfounded and based largely on ignorance.”

Bentleys New Zealand, when contacted, said Thompson was not in the office.
Last month, after the Panama papers highlighted the vulnerabilities in New Zealand government’s legal framework, which led to a possible link in international tax avoidance structures because its foreign trusts are not subject to tax, it assured to begin a review of its foreign trust laws.

Prime Minister John Key dismissed concerns that international tax avoidance was rife in New Zealand.

"New Zealand is barely ever mentioned, it's a footnote," Key said.

By Phani Ch