19 February 2016
Consultation begins on AEOI implementation
The OECD’s automatic exchange of information (AEOI) initiative will set a global standard for sharing information with the objective of minimising tax evasion, says Revenue Minister Michael Woodhouse.
An issues paper, Implementing the global standard on automatic exchange of information, was released today for public feedback. The paper outlines proposals for implementing the global standard on the AEOI.
“AEOI is aimed at countering tax evasion, and will be an important new means for recovering lost tax revenue and improving transparency in tax matters,” says Mr Woodhouse.
“But we need to ensure that it is implemented in the most efficient manner for New Zealand, so I’m pleased we are now going through this important public consultation process.”
The new rules impose due diligence and reporting requirements on financial institutions which includes banks, as well as a broad range of entities including certain brokers, custodians, collective investment vehicles, managed entities and insurance companies.
“We will have a phased implementation, with 1 July 2017 as the start date for financial institutions to conduct due diligence and reporting requirements on all new accounts. This will allow Inland Revenue to start exchanging information with other tax authorities by September 2018, in line with the international requirements.
“AEOI will require financial institutions provide information on account holders’ financial assets to their local tax authority.
“We want to minimise compliance costs and other adverse consequences for financial institutions, so it is important that all interested parties get involved in the consultation process and consider the implementation proposals in this issues paper.”
The issues paper is available at www.taxpolicy.ird.govt.nz. Submissions close on 31 March 2016.