New Zealand

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Overall Phase 2 Rating is Compliant

Table of Determinations and Ratings of the Combined Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Offshore persons must, as of 1 October 2015, inform upon tax registration (i) a fully functional New Zealand bank account or (ii) the details of a New Zealand AML reporting entity that has conducted customer due diligence on them. Moreover, any person who already has a tax number and becomes an offshore person must inform a current bank account to the Commissioner. Finally, income tax return forms applicable to both offshore and non-offshore persons (except partnerships and look through companies) contain a field for a current bank account to be provided, but the law does not contain explicit requirements for all persons to maintain a current bank account. New Zealand estimates that the universe of entities which do not have a bank account with a New Zealand registered bank is small.  New Zealand should ensure that beneficial ownership information in accordance with the international standard is available for all relevant entities and partnerships. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  AML obligations requiring a number of professionals such as lawyers, accountants and trust and company service providers to identify their customers when providing services such as trustee, nominee and other corporate services were recently enacted and their implementation could not yet be assessed.  New Zealand should monitor the implementation of new legal provisions to ensure that relevant professionals maintain beneficial ownership information as required under the standard. 
Tax reporting requirements supporting the availability of beneficial ownership information are relatively new (as of October 2015, for offshore persons and February 2017, for non-resident settlor trusts). No programme is currently in place to ensure that offshore persons that were registered before the new requirements came into force comply with them.   New Zealand should monitor the compliance with the recently introduced legal requirements to ensure that beneficial ownership information is being maintained in practice. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.   Accounting records and underlying documentation for a liquidated company and a liquidated limited partnership are not required to be maintained for a period of 5 years or more.  New Zealand should require that accounting records and underlying documentation be maintained for liquidated companies and liquidated limited partnerships for at least 5 years. 
Phase 2 Rating Factors Recommendations
Compliant.     
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Compliant.     

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.