Amendments to Cook Islands tax laws are expected to be made next month.
The changes would allow government to write-off some tax debts and forgive companies or individuals any undeclared income.
Describing the changes as a tax amnesty the Finance minister Mark Browne said the government had made a commitment to waive any additional tax, but companies and individuals would still be obliged to pay the core tax owing.
Mr Browne also said there would be a slight reduction in income tax.
Tax on earnings from $NZ11,000 to $NZ30,000 will drop by half a percent, reducing the tax bracket to 17 percent.
Earnings of $NZ30,000 to $NZ80,000 will also be reduced by half a percent to 27 percent.