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

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news