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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news