The Inland Revenue Department has launched a new section on its website to assist with providing information for New Zealand's implementation of the global automatic exchange of information (AEOI) initiative from 1 July 2017.
New Zealand is one of 100 countries which will automatically share some financial account information about foreign tax residents. All participating countries will use the Common Reporting Standard (CRS) to identify and report on financial accounts held or controlled by foreign tax residents.
From 1 July CRS will require reporting New Zealand financial institutions to commence due diligence to identify accounts held or controlled by foreign tax residents. They will also have to collect prescribed identity and financial account information about the identified accounts, and report this information to Inland Revenue annually by 30 June.
What financial institutions will be included?
There is a broad definition of a financial institution. Apart from more obvious entities such as banks, this can also include non-bank deposit takers, collective investment entities, mutual funds, private equity funds, hedge funds, discretionary investment managers, certain brokers and trusts (including some managed family trusts).
New information website section
The new CRS section on IRD's website - www.ird.govt.nz/international/exchange/crs - provides information on the global CRS for the AEOI.
Inland Revenue plans a targeted public awareness campaign during June and July 2017 to highlight the changes and impacts. Information sessions will be held in June, and the key focus of these will be a general implementation update. Suggestions for topics can be made by emailing email@example.com
The information sessions will be held in Wellington on 7 June (10am to noon in the Grand Dining Room at the Wellesley Hotel) and Auckland (8 June, 1pm to 3pm, 2 Takutai Square Britomart).