bulletEDITOR'S PICKS

 

Serious Fraud Office to investigate Timothy Schools and Axiom

From Products Aug 29 2014 @ 17:16

Timothy Schools, the former manager of the failed legal financing fund Axiom, is being...
view article

FCA fines and bans broker over 'dishonest' UCIS sales

From United Kingdom Aug 29 2014 @ 11:18

The Financial Conduct Authority has fined and banned an IFA for life after he was found to have...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

Former BNP Paribas wealth head switches to Coutts

Former BNP Paribas wealth head switches to CouttsMiles Le Cornu is to join Coutts on 8 September as head of private client trust...
view article

Overseas Trust & Pension launches QROPS...

From Products Sep 1 2014 @ 17:13

‘Europe is structured corruption’ – Former...

From Analysis Sep 1 2014 @ 16:44

MORE FROM People

LATEST NEWS

RL360° combines life cover with trusts for IHT product

RL360° combines life cover with trusts for IHT productInternational life company RL360° has launched the Asset Protection Plan,...
view article

Matthews Asia launches new Strategic Income...

From Products Sep 1 2014 @ 12:45

Barclays to sell Spanish wealth arm, completes...

From Europe Sep 1 2014 @ 11:30

MORE FROM Life

LATEST NEWS

VAM launches frontier equities strategy

VAM launches frontier equities strategyVAM has launched a Luxembourg-domiciled UCITS IV fund targeting the “high growth...
view article

Worried about fine inflation, Woodford sells...

From Products Sep 1 2014 @ 10:08

Serious Fraud Office to investigate Timothy...

From Products Aug 29 2014 @ 17:16

MORE FROM Products



Daniel Flynn

New Zealand wangles sharing exemptions in US FATCA agreement

From Tax & Regulation Jun 13 2014 BY: Daniel Flynn

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


New Zealand has signed a unique intergovernmental-agreement (IGA) with the US allowing it to keep “low risk” accounts exempt from disclosure after the introduction of FATCA next month.

The IGA, signed today by Revenue minister Todd McClay and US chargé d’affaires Marie Damour, will grant immunity to information about Superannuation, KiwiSaver schemes, tax pooling accounts, registered charities, and Maori authorities.

It differs to those signed by other countries, which agree automatic information sharing liabilities on all accounts held by US taxpayers following the Foreign Account Tax Compliance Act’s implementation.

McClay said the agreement will stop additional costs being passed on to customers by making it easier for financial institutions to reach FATCA compliance.

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

He added that the IGA will help to stamp out tax evasion.

FATCA is part of the US Hiring Incentives to Restore Employment Act. It ensures that US persons, wherever they are located and in whatever investment vehicle they hold their assets, are paying the correct amount of US tax.

It requires foreign financial institutions to report information to the Internal Revenue Service about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest.

When the act comes into force, those who are not compliant will suffer a 30% withholding tax on income and gross proceeds.

An IGA makes it easier for partner countries to comply with the provisions under FATCA. The benefits of an IGA include the relaxation of deadlines and increased clarity and simplicity around due diligence with country specific provisions.

For a comparison between the IGA model 1 and 2 click here.

"More sympathetic"

Earlier this week, head of the US Internal Revenue Service (IRS), John Koskinen said the US tax authorities were set to make the amnesty programme aimed at encouraging US citizens to declare any offshore bank accounts more sympathetic.

He said the IRS was considering whether its “voluntary programs have been too focused on those wilfully evading their tax obligations and are not accommodating enough to other who don’t necessarily need protection from criminal prosecution because their compliance failures have been of the non-wilful variety”.
 

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...