Reminder: Update your tax residency status


#1

Hi everyone, just a reminder for those who have received a letter or email requesting information about your tax residency status that the deadline to provide it is approaching!

As part of global measures to counter tax evasion, all NZ banks and financial institutions are now required to collect information about customers’ foreign tax residency and pass that and other personal and account information onto Inland Revenue, which may then be exchanged with overseas tax authorities.

Generally called the Common Reporting Standard, it has been initiated by the Organisation for Economic Co-Operation and Development (OECD) under the Automatic Exchange of Information (AEOI) regime to achieve the exchange of certain information between participating countries. Currently over 100 countries have agreed to implement the standard, including New Zealand.

If you’ve received a letter or email from us then please ensure you provide this information as soon as possible. Those who have not provided this information by 22 June 2018 are at risk of having their bank accounts deactivated.

The easiest way to do this is via internet banking – log in and navigate to Menu > Settings > Foreign Tax Residency, and follow the prompts.

More information on the Common Reporting Standard and how to provide your foreign tax residency information here: https://www.bnz.co.nz/about-us/governance/corporate-governance/common-reporting-standard


#2

Impertinent questions:

  1. Do you share new immigrants, asylum seekers and refugees, information with corrupt and/or dictatorial regimes?

  2. Do you share information with countries where allegations of “tax malfeasance” are commonly used as a political and commercial weapon?

  3. Do you share information with countries with legally or culturally lax privacy standards - where someone can obtain information on someone else because their friend or family member works in that country’s government?

  4. Do you share any information which could place someone in danger of extortion by criminal/undesirable elements?

For the above “you” is defined as directly or indirectly.

For reference - here is the list:
“AEOI Commitments” document


#3

Why so quiet? You always seem to be in a hurry to respond to enquiries where you think there is a dollar to be made.

Why have Swiss banks paid a $1.25 billion dollars settlement to holocaust victims and heirs? Did you look into the background behind that?

Remember one of the major lessons of history - if it’s happened before, it ain’t impossible anymore.

So with that in mind, I am waiting for a fulsome response to my “not the least bit impossible because there are historical precedence” questions.


#4

Hi @michaelnz, sorry for the delay in response. Under new regulations all banks in New Zealand are required to undertake due diligence on the foreign tax status of their customers and provide relevant related information to Inland Revenue.

Effectively this means Banks and other financial institutions need to identify accounts held by foreign tax residents, and report relevant information to Inland Revenue, which in turn shares that information with other countries subject to the terms of international tax treaties.

Please see more information provided by Inland revenue for New Zealand bank account holders here:

Hope that helps! Any further questions, please don’t hesitate to ask :slight_smile:


#5

Sure. I have asked 6 real-world questions and you have not answered any of them.


#6

The links to IRD and OECD website within the PDF file will also help to answer your above questions. If you click onto the IRD website, you can find information that list out all of the countries that are participating in the Automatic Exchange of Information. Have a look at those links, it will help :slight_smile:


#7

I have looked at the list and linked to it in my first post. I can see several countries there which have conditions which fit within the questions asked.
Furthermore, the BNZ’s policy is to demand a TIN (Tax Identification Number) from nationals of any other country, regardless of whether it’s on the list, or not, so seeing most of the ‘less risky’ countries have jumped on board (they are the ones at the top of the list), it’s only downhill from here.

At this stage, you have not made any attempt to deal with the questions raised.

Extending this out - I can not find any anti-corruption policy on the BNZ’s website. This is pretty much a staple for any large corporation, especially ones operating, or dealing with, transnational business. Why is this?