New Zealand Law Society - OECD AEOI consultation begins

OECD AEOI consultation begins

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Revenue Minister Michael Woodhouse has released an issues paper for public feedback on the OECD's automatic exchange of information (AEOI) initiative.

The paper, Implementing the global standard on automatic exchange of information, outlines proposals for an initiative which will set a global standard for sharing information with the objective of minimising tax evasion.

Mr Woodhouse says AEOI will be an important new means for recovering lost tax revenue and improving transparency in tax matters.

"But we need to ensure that it is implemented in the most efficient manner for New Zealand, so I'm pleased we are now going through this important public consultation process."

The new rules impose due diligence and reporting requirements on financial institutions which includes banks, as well as a broad range of entities including certain brokers, custodians, collective investment vehicles, managed entities and insurance companies.

There will be a phased implementation, with 1 July 2017 as the start date for financial institutions to conduct due diligence and reporting requirements on all new accounts.

"This will allow Inland Revenue to start exchanging information with other tax authorities by September 2018, in line with the international requirements," Mr Woodhouse says.

AEOI will require financial institutions to provide information on account holders' financial assets to their local tax authority.

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