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New Zealand invites financial sector to suggest exemptions from automatic exchange reporting

Monday, 21 November, 2016

New Zealand's tax authority is consulting on a list of the types of entities and accounts that will be automatically excluded from the due diligence and reporting obligations created by the OECD scheme for automatic exchange of financial information.

The OECD's standard protocol for automatic exchange of financial account information, called the Common Reporting Standard (CRS), already includes general criteria for excluded entities (non-reporting financial institution or NRFIs) and excluded accounts. All such entities are excluded in every jurisdiction. However, CRS also provides a means by which a government can nominate other low-risk entities or accounts as exempt from reporting, provided they meet certain criteria. These entity types are to be defined in each jurisdiction's domestic law.

New Zealand’s Inland Revenue Department (IRD) has now published a fact sheet setting out the criteria that might enable it to classify a financial institution as 'low risk'. Financial institutions who think they should be granted NRFI status are being invited to submit their proposals to the IRD, which will consider them and make recommendations to the NZ ministry of finance.

Suggestions can be submitted until 31 January 2017.