New Zealand has signalled its intentions to negotiate an intergovernmental agreement (IGA) with the United States to clarify the reporting obligations of New Zealand financial institutions under the United States’ law commonly known as the Foreign Account Tax Compliance Act (FATCA).
This bill contains amendments that are required to bring any agreed IGA into domestic law and allow New Zealand financial institutions to comply with its terms. The proposed amendments are generally drafted in a broad manner to accommodate the possibility of New Zealand entering into similar agreements with other jurisdictions in the future.
The proposals attracted more than 50 submissions, mostly from individuals (including some from overseas). Submissions from these individuals were unanimously opposed to FATCA and the IGA and, by extension, the proposed changes.
Submissions were also received from the financial services sector and their advisors. These submissions broadly supported the intent of the proposed amendments, and commented on some technical and drafting issues.