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

 


New Zealand ready for FATCA

New Zealand ready for FATCA


New Zealand is now ready to comply with US tax law that aims to reduce tax evasion by US persons who have financial accounts outside the United States said the New Zealand Bankers’ Association today.

The third reading of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill today, in conjunction with an intergovernmental agreement (IGA) signed last week between New Zealand and the United States, means that New Zealand financial institutions can comply with the US Foreign Account Tax Compliance Act (FATCA).

FATCA requires participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons and will be phased in from 1 July 2014.

To help implement FATCA New Zealand needed to enter into an agreement with the United States and to amend the Tax Administration Act 1994. The amendment passed today requires all financial institutions to collect information to determine whether a customer is a US person and to disclose required information to Inland Revenue. Under the agreement signed last week, Inland Revenue collates this information and passes it on to the US Internal Revenue Service.

“Our banks and New Zealand have little choice but to comply with FATCA,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Not complying could see banks penalised by a 30% withholding tax on principal 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. So there would be a huge impact on our economy if we didn’t comply.

“Complying with FATCA also allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts.

“We commend the government for its efforts in negotiating an IGA that secures a number of New Zealand-specific exemptions and does its best to protect New Zealanders’ interests,” Hope said.

Further information about FATCA and how it may affect you 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

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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