Budget 2016 transforming NZ’s tax system

Combatting global tax evasion

The New Zealand government has joined more than 100 other countries in a global initiative to combat tax evasion. It’s called the Automatic Exchange of Information – or AEOI.

This international collaboration will make it even harder for people who are trying to evade paying tax by hiding money or investments overseas.

What this could mean for you

New Zealand tax residents are taxed on the money they make in New Zealand and in other countries – even if they don’t bring money earned overseas into New Zealand.

Money earned overseas could include interest from an overseas bank account or income from an overseas investment, rental property, business and more.

If you’re a New Zealand tax resident who earns money in another country, your information may be shared with Inland Revenue as part of AEOI. So now’s a good time to check you’re paying the right amount of tax. If you need help getting your tax right, talk with Alliott NZ Chartered Accountants on +64 9 520 9200.

Source NZ Inland Revenue