Exchange of info & foreign trust disclosures

by | Sep 9, 2016 | Latest news

The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill (‘bill’) was recently introduced in New Zealand. The bill contains a number of proposed amendments to the Income Tax Act and the Tax Administration Act.

From an international perspective, the bill provides measures for the New Zealand implementation of the G20/OECD standard for Automatic Exchange of Financial Account Information (‘AEOI’) in Tax Matters, and new disclosure rules for foreign trusts.

With respect to the AEOI, New Zealand acknowledges its role in buttressing the mechanics for detecting offshore tax evasion through the OECD’s Common Standard on Reporting and Due Diligence for Financial Account Information (‘Common Reporting Standard’).

This is especially so in the wake of the Panama Papers scandal, where New Zealand has been placed in the international spotlight for its lack of disclosure rules around offshore investments, notably, the use of foreign trusts to shield assets from taxation in any jurisdiction.

The bill also addresses this issue, which was reviewed recently by the New Zealand government. Pursuant to the Shewan report the bill contains proposed new rules for the registration and reporting of foreign trusts to the New Zealand government.

Proposals include:

  • a requirement for resident trustees to register new foreign trusts within 30 days of formation.
  • existing foreign trusts will need to be registered by 30 June 2017.
  • an annual submission of an annual return including financial statements.
  • payment of a registration fee of $270 and an annual filing fee of $50.

Currently, only minimal information is required to be disclosed to Inland Revenue including the existence of a foreign trust, the name of any New Zealand trustees, and whether there is an Australian settlor.

New Zealand resident trustees are currently only required to maintain the trust deed, details of settlers, and beneficiaries receiving distributions, to be made available to Inland Revenue upon request.

The proposed new disclosure rules contained in the bill, therefore, will provide greater transparency into the activities of foreign trusts with New Zealand resident trustees.

Recent Posts

Archives

Safety ElectricalSafety Electrical
21:30 21 Aug 24
I came across this person by google search . First attempt could not get connected .she so good returned my call with 5 min . Asked her few question , would say very good on what she does .Also plus point , she follows you up again . I would say very help full person . Recommend to go with her , no second thoughts .
Maryanne GarryMaryanne Garry
09:09 21 May 24
Gina is exceedingly detailed and knowledgeable. Her expertise is like a lifeline for US expats.
Matt RollMatt Roll
04:09 21 May 24
I'm thankful for finding NZ US Tax Specialists because Gina is one of the few people I know with a working knowledge of the intersection of U.S. and NZ tax policies. Our tax return was accurately completed on time and without any issues. I'm planning to use their services for years to come.
Spencer SmithSpencer Smith
03:47 21 May 24
US tax is a complex beast. Gina and her team have been very helpful to me and my clients with US tax issues.
Chris LemonChris Lemon
22:46 20 May 24
Gina and the folks at NZ US Tax Specialists were very quick to answer a question I had on the NZ tax treatment of US Military pensions, a fairly obscure area of tax law. They're great to work with.
Danielle FaireyDanielle Fairey
20:00 15 Oct 23
Gina was such a great help in navigating my tax requirements after moving between the US and NZ. She was great to work with - always very responsive and helpful. I would definitely recommend and work with NZ US Tax Specialists again in the future.
NZ US Tax Specialists has been a lifesaver with regards to a family member’s move from the US to NZ. Gina and her team have been there to help us understand the complexities of dual tax status and have greatly assisted in getting everything filed on time. While taxes will never be fun, working with NZ US Tax Specialists has brought our stress levels down considerably.
James SteeleJames Steele
02:57 13 Apr 23
Gina helped us prepare our US tax returns after we moved to NZ during a very busy time. We had no idea what was required as US citizens living abroad, but Gina was extremely helpful, knowledgeable, and professional. The work was affordable and well done. We had a great experience and hope to use NZ US Tax Specialists again.
Marivee McMathMarivee McMath
06:35 13 Feb 23
I am very happy with the way NZ US Tax Specialists handled sorting out my US Taxes! It certainly put my mind at rest. Felt I was in safe 'hands' throughout the process.
Gareth RobinsGareth Robins
04:31 13 Feb 23
Gina quickly attended to my tax questions and was very helpful
Deborah MunroDeborah Munro
03:54 19 Oct 22
If you're a US expat and need to file a US tax return, then look no further! Gina and her team at NZ US Tax Specialists does outstanding, professional work. I had to amend my US tax return, as I didn't know I had to file a form. Gina got that done, but they also found I'd made an error, and they fixed that for me as well, keeping me in good standing with the IRS. I'm definitely returning next year to get their assistance again.
Karen SmithKaren Smith
23:32 02 Sep 22
I have been working with Gina since 2014, when I needed US Tax advice, being both a New Zealand and United States citizen. Over the eight years that we have been working together, I have found Gina to be extremely knowledgeable about the US tax system and the New Zealand IRD. She is quickly able to provide definitive answers to my US tax questions, via her extensive contacts in the US tax department.Gina is always prompt in responding to my email and phone conversation questions and her professionalism has inspired my confidence in her many times over.She has guided me through my annual tax return filing with integrity and honesty and I fully trust her to get the job done well each year.
js_loader

Level 7

2 Kitchener Street

Auckland 1010

New Zealand 

Phone No.: 09-5255931

Terms Of Trade

Disclaimer

Privacy Policy

NZ US Tax Specialists Limited is a registered trademark. All rights reserved.