Automatic Exchange of Information Agreement
New Zealand has signed up to an international agreement to share information with other tax authorities.
This is a government initiative, designed to make sure everyone pays the right amount of tax when they have interest in multiple countries.
The changes come into effect on 1 July 2017 and will affect you if you have any financial interests overseas.
This quick guide covers what this means for you, and what will happen to the information you provide.
What does the information sharing agreement involve?
Inland Revenue (IRD) will collect identity and financial information from NBS about accounts held, or in some cases controlled, by foreign tax residents. IRD will then share this information with any foreign tax authorities who are part of the information sharing initiative where there is a tax interest. In return, IRD will receive information from foreign tax authorities about New Zealand residents’ offshore investments. This change will mean IRD can check everyone is paying the right amount of tax for their interests in New Zealand.
What happens to your financial account information?
IRD will share relevant information it collects from banks with foreign tax authorities if they are part of the agreement and you have tax interest in that country, and vice versa. This information sharing will enable tax authorities to ensure everyone pays the right amount of tax.