Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


US tax law to take effect in New Zealand


US tax law to take effect in New Zealand

New Zealand banks are moving to implement their obligations under the United States Foreign Account Tax Compliance Act (FATCA).

The US law aims to reduce tax evasion by US persons using financial accounts outside the United States of America. It does so by requiring participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons.

“FATCA does not introduce any new tax obligations for US citizens and residents living in New Zealand. They will still have to file an annual US tax return,” said New Zealand Bankers’ Association deputy chief executive Karen Scott-Howman.

FATCA will be phased in from 1 July 2014. The information reporting requirements will apply to relatively few people living in New Zealand. They include US citizens, US permanent residents and green card holders, and people born outside the United States who have a US parent.

“Anyone unsure about their US tax status should seek independent tax or legal advice,” Scott-Howman said.

If financial institutions do not comply with FATCA they may be penalised by a 30% withholding tax on principle and income from investments in the United States. US capital markets provide much of the funding most banks need to lend to New Zealand households and businesses. If those funding sources were no longer available due to non-compliance there would be a significant impact on the New Zealand economy.

“Complying with FATCA allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts,” said Scott-Howman.

The New Zealand Bankers’ Association has produced a FATCA information sheet for bank customers which is available at:
http://www.nzba.org.nz/assets/Uploads/Documents/You-and-your-US-tax-obligations.pdf


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news