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The latest knowledge and insight from NZ US Tax Specialists, demonstrating our understanding of complex tax issues and challenges facing our clients.
The Foreign Account Tax Compliance Act – FATCA explained
In 2010 I received a call from a very upset US citizen about the enactment of the Foreign Account Tax Compliance Act.
She sent me the article she had just read, which set out the future of information reporting by institutions outside the United States to the US government.
read moreV-Day jitters shake the Shakey Isles
With enough rumblings to cause a volcanic eruption, the capital gains tax debate is currently raging in New Zealand. The
bonfire was ignited after the Tax Working Group’s Final Report was released last week, in it recommending capital gains tax be introduced from
1 April 2021 (Valuation Day, or ‘V-Day’).
Trusts classification: what you don’t know can hurt you!
Are you getting the classification of your trust correct for US tax purposes? In 2018 the Internal Revenue Service started a campaign targeting foreign trusts’ failure to comply with the filing requirements of US owners[1] of foreign trusts, including ownership, and transactions with a foreign trust. For US expats it is a minefield requiring an experienced US tax practitioner to guide them through.
read moreUS Tax principles tested in 2018 Tax Court Case
Gina Gatchell examines a Tax Court case of Virginia-based taxpayers Toso & Salman which tested several US tax principles. These affect all US citizens and residents.
read moreAssist Taxpayers to Comply – AICPA plea to the IRS
The American Institute of Certified Public Accountants (AICPA) penned a letter to the IRS just prior to Friday’s announcement of the end of the shutdown, citing the AICPA’s concerns around the ensuing effects of the IRS shutdown on taxpayers and practitioners.
read moreTreatment of certain foreign currency transactions
Section 988 of the Internal Revenue Code Treatment of Certain Foreign Currency Transactions taxes certain transactions. The general rule is that the disposition of any non-functional currency will be treated as a section 988 transaction. However, there are exceptions, particularly with respect to individuals holding foreign-currency-denominated financial assets and liabilities. Gina Gatchell explains…
read moreNZ tax case attracts international attention
A recent NZ court case involved a tax agent (Chatfield & Co), the Commissioner of Inland Revenue (CIR), the Korean National Tax Service and the NZ Competent Authority (Mr Nash).
read morePermanent Place of Abode Test
A recent New Zealand court case is the second one in recent years involving the determination of the permanent place of abode concept (‘PPOA’).
read moreNZ tax treatment of foreign retirement accounts
Do you think that the United States has complex tax rules? New Zealand has some to match, and the country’s system of taxing United States retirement accounts such as IRAs warrants the advice of an expert in this area – preferably prior to migrating to New Zealand.
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