The Governments of Australia and the Cook Islands have signed an Agreement for the Exchange of Information with Respect to Taxes. The Agreement provides for exchange of information on request in both criminal and civil tax matters.
In addition, Australia and the Cook Islands have signed an Agreement for the Allocation of Taxing Rights with Respect to Certain Income of individuals and to Establish a Mutual Agreement Procedure in Respect of Transfer Pricing Adjustments. This Agreement will allocate taxing rights over certain income derived by retirees, government employees and students and provide a mechanism to help resolve transfer pricing disputes.
The Agreements were signed in Rarotonga by the Australia’s Assistant Treasurer, the Hon Nick Sherry, and the Cook Island’s Deputy Prime Minister the Hon Sir Terepai Maoate on 27 October 2009.