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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news