Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Intergovernmental FATCA agreement signed

Hon Todd McClay
Minister of Revenue

12 June 2014

Intergovernmental FATCA agreement signed

Revenue Minister Todd McClay and United States Chargé d’Affaires a.i., Marie Damour, today signed an intergovernmental-agreement (IGA) which will minimise compliance costs to financial institutions in New Zealand while assist in the prevention of tax evasion.

The IGA is in response to the Foreign Account Tax Compliance Act (FATCA) information-reporting regime enacted by the United States which will take effect from 1 July 2014. It requires non-US financial institutions to provide certain information about their US customers to the United States.

US tax payers have a worldwide tax responsibility to the US government.

“Under the IGA, rather than individually sending account information for US taxpayers to the US IRS, New Zealand financial institutions will instead provide this information to Inland Revenue, who will exchange it with the IRS,” Mr McClay says.

Mr McClay says that the agreement will make it easier for New Zealand financial institutions to comply and thereby reduce additional costs being passed on to New Zealand customers.

“The IGA is reciprocal, meaning that New Zealand will also receive information about certain accounts held by New Zealand residents with US financial institutions. This will help prevent tax evasion and enhance the integrity of both countries’ tax systems.”

“This agreement is much the same as negotiated by a number of other nations including Denmark, Australia and the UK. The key difference is that we have managed to negotiate New Zealand-specific exemptions for entities and accounts that are considered low-risk from a US tax evasion and avoidance perspective. This includes Superannuation, KiwiSaver schemes, tax pooling accounts, registered charities, and Maori authorities as defined by tax legislation.”

“It is not imposing extra taxes or changing taxing rights. It is also not about Inland Revenue collecting taxes on behalf of the US government.”

“The IGA simply makes it easier for our financial institutions to comply with US law, while also helping stamp out tax evasion,” Mr McClay says.

The text of the agreement and a related memorandum of understanding are available at www.taxpolicy.ird.govt.nz.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Election Day: Polls Close: Counting Underway

The polling booths have closed.

Voters have made their decisions and the counting has begun as politicians await their fate.

A total of 717,579 advance votes were cast compared to 334,558 in 2011 with 160,467 cast on Friday.

Counting of these votes began this afternoon and the results are expected by 8.30pm.

Overall Results | Live Results | Predictions |

 
 


Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news