Although due date for CRS & FATCA disclosures has passed, NZ IRD still accepts late submissions

Financial institutions needed to report information about foreign tax resident financial accounts to us for the year ending 31 March 2018 by 30 June.

This is an annual obligation to comply with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) legislation. IRD is due to exchange information internationally by 30 September 2018.

Find out more about Common Reporting Standard registration and reporting at www.ird.govt.nz/crs

Find out more about Foreign Account Tax Compliance Act registration and reporting at www.ird.govt.nz/fatca

IRD customers continue to focus on how the CRS applies to trusts, as well as broader CRS due diligence and reporting obligations, specifically:

  • tax residency self-certification requirements – are accounts you hold or control with financial institutions, reportable accounts?
  • persons connected to a trust (including discretionary beneficiaries receiving distributions) – are trusts and/or trust accounts you manage, reportable persons?
  • whether the trust or corporate trustee is a financial institution – do New Zealand trusts or New Zealand foreign trusts you act for as a corporate trustee have to register and/or report to NZ IRD?

Guidance and support materials

Build your CRS knowledge using our factsheets at www.ird.govt.nz/crs

  • Accountants and the CRS (IR1089)
  • Is the Trust a Reporting New Zealand financial institution? (IR1052)
  • Family Trust obligations under the CRS (IR1053)
  • CRS Due Diligence and Reporting (IR1049)
  • CRS Obligations: Account holders (IR1220)

For more information

  1. Sign up for the free AEOI Overview, ‘Back to basics’ webinar at www.cchlearning.co.nz (search keywords: aeoi on demand).
  2. Email your questions, and sign up to receive updates at global.aeoi@ird.govt.nz
  3. Read about Foreign Account Tax Compliance Act (FATCA) obligations, guidance and the support materials available via www.ird.govt.nz/fatca

Banks closing or freezing bank accounts of customers (incomplete tax residency declarations)

As part of the automatic exchange of information (AEOI) combating global tax evasion, financial institutions including banks, are legally required to ask all their customers to “self-certify” their country of tax residency.

If any of our clients have had their financial accounts frozen and/or closed because they have not completed the relevant “self-certification” requirements, please refer to your bank for completion.

Find out more about tax residency on IRD’s website www.ird.govt.nz (search keywords: international residency) or call the Alliotts team in Auckland on +64 9 520 9200.