New Zealand Issues Guidance On OECD’s Common Reporting Standard
New Zealand’s Inland Revenue has published draft guidance to help financial institutions prepare for the OECD’s Common Reporting Standard for the Automatic Exchange of Financial Account Information in Tax Matters.
The country is expected to pass legislation to implement the CRS by March 2017.
The CRS is an international standard that allows countries across the world to target tax avoidance through sharing information on income and assets automatically on an annual basis.
The “advanced draft guidance” is intended to help financial institutions prepare for their obligations as early as possible. Financial institutions for the purposes of this initiative has a wide meaning, including some fund managers, investment advisers, insurance companies, and trusts as well as banks. The draft guidance outlines how these various entities are affected and their responsibilities. It also sets out the obligations that account holders (and other persons connected with accounts) will have to provide information to such financial institutions to assist those institutions comply with their responsibilities under the Common Reporting Standard.
Inland Revenue has asked for feedback on the draft document by February, 28, 2017.