30 Sep 2015

Cooks govt working with pensioners refusing to pay tax

3:21 pm on 30 September 2015

The Cook Islands government says it is encouraging superannuants refusing to pay taxes on their New Zealand pensions to set up small payments to keep up with what's owed.

In an ongoing dispute, Grey Power says it will continue to march in protest at taxes on their pensions when parliament sits again.

The Financial Secretary for the Ministry of Financial and Economic Management, Richard Neves, says there are about 250 people in the Cook Islands receiving a New Zealand pension, and about 40 or 50 who are refusing to pay tax.

Mr Neves says paying the tax is a matter of law, and is working with those refusing to pay.

"We've had a number of visits with New Zealand superannuants, we've tried to be understanding, essentially make arrangements for the bank to just deduct a regular payment out. We won't be taking big amounts but just the amounts needed to ensure that people don't fall into a situation where they owe us lots of tax."

The Financial Secretary, Richard Neves.

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