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

 


Russell McVeagh welcomes signing of FATCA agreement with US

FOR IMMEDIATE RELEASE:


Russell McVeagh welcomes signing of FATCA agreement with US

12 June 2014

Law firm Russell McVeagh has welcomed the signing of an Inter-governmental Agreement (or IGA) between New Zealand and the US as a further step in implementing the FATCA regime in New Zealand. Tax specialist Greg Neill noted that, while FATCA has been far from popular given the costs of compliance, the release of the signed IGA would give New Zealand businesses increased certainty as to their FATCA obligations.

FATCA refers to provisions of the US Internal Revenue Code enacted to address the evasion of US tax by US residents holding assets outside the US. The provisions require non-US financial institutions to report information concerning their US customers, and impose onerous withholding taxes on those that do not meet the reporting requirements.

The IGA permits New Zealand financial institutions to report the required information to the New Zealand Inland Revenue, with Inland Revenue then providing the information to the US authorities. Without the IGA, New Zealand entities might have to provide such information directly to the US authorities which would raise privacy and other legal issues.

As the implementation of FATCA approaches, Mr Neill noted that many businesses were now wanting to close out some of the more detailed legal issues raised by FATCA.

"The sorts of questions we have been looking at are whether certain types of entity are subject to FATCA, the scope of some of the exemptions and, if FATCA does apply, what specific due diligence and reporting processes will be necessary. Having the signed IGA will provide greater certainty on those issues and enable affected businesses to ensure that their legal documents and compliance procedures are up to date in time for FATCA's implementation."

Mr Neill also noted that this was only the first step in a global drive for increased tax transparency. "It is likely that an increasing number of jurisdictions will seek to implement information sharing arrangements along similar lines to FATCA which will give rise to additional legal issues in the future."

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