Our Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) Obligations

All New Zealand banks and financial institutions, including Resolution Life Australasia Limited (RLA) are required to collect information about customers’ foreign tax residency and pass that and other personal and account information onto Inland Revenue. This includes our reporting obligations under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) requirements. 

Under these requirements RLA must ask customers for information and certify whether or not they are a foreign tax resident.

We explain more about our FATCA and CRS obligations below.  For further information on FATCA and CRS please refer to the Inland Revenue Department’s (IRD) website.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA) is legislation aimed at preventing tax evasion by U.S. persons (individuals and entities).  All non-U.S. Financial Institutions (FFIs) are required to identify and report financial accounts held by U.S. citizens or U.S. residents to the U.S. Internal Revenue Service (IRS).

The obligation on RLA to adhere to FATCA in New Zealand is driven by the Exchange of information (ird.govt.nz), and the supporting New Zealand legislation.

Common Reporting Standard

The Common Reporting Standard (CRS) is an international initiative involving over 100 countries to exchange information on accounts held by non-resident individuals and entities with the tax authorities in their respective countries of tax residency.

To comply with CRS, banks and other financial institutions are required to collect foreign tax residency information from their customers. The aim of this legislation is to promote a reduction in offshore tax evasion. All participating countries, which include New Zealand, are required to identify and report foreign account holding information to their local tax authority which may also be disclosed to the relevant foreign tax authorities.

All RLA customers (individuals, business, trust, etc.) are subject to this legislation.

What does this mean for existing customers?

If you have an existing account or product with us, we may contact you if we have information to suggest that you are a foreign tax resident. We may also request your foreign tax residency status if you open a new account or purchase a new product with us and have not previously advised us of your foreign tax residency status. Customers who are minors and their parents or guardians may also be contacted if they have not provided their foreign tax residency status.

It is important that you respond to any requests for further information and confirm your tax residency status to ensure that your customer information is accurate, and that we don't inadvertently report incorrect information.

Different information collection for FATCA and CRS

FATCA requires RLA to ask you if you are a U.S. citizen or a U.S. tax resident. CRS requires RLA to ask you about your foreign tax residency.

What is tax residency?

Foreign tax residency is determined by the rules of each participating country’s taxation laws. It is important that your tax residency information is correct, complete and not misleading.

This includes, ensuring you advise RLA within 30 days of any change in circumstances that affects your tax residency status and provide RLA with an updated self certification within 30 days of such change in circumstances.

Under local legislation, severe penalties may apply for providing false or misleading information.

For more information, we suggest you contact your tax adviser or refer to Foreign Account Tax Compliance Act (FATCA) (ird.govt.nz)

Our obligations to collect and share information

•    All new customers will be required to provide information about their tax residence when applying to open an account.
•    Existing RLA customers may be required to provide information about their tax residence when requested by us.

Collecting and sharing foreign tax information

If you are a foreign tax residents, we are required to provide information relating to our accounts to the IRD.  The IRD may then share that information with the tax authority of the country/jurisdiction(s) where you are tax resident on an annual basis.

Collection and sharing of foreign tax information will be done in accordance with FATCA and CRS requirements and our Privacy Policy and we will only share information required to meet our statutory obligations.  

How to provide your tax residency details

Login to My Resolution Life portal to provide your tax residency details and check your contact and address details are up to date.

If you haven’t used My Resolution Life portal before, you can register now. 

What is my Tax Identification Number (TIN)?

A TIN is an identifying number or equivalent (e.g. social security number, personal identification number, national identification number) issued by a country of tax residency that is used for tax purposes. If you are unsure about your TIN, contact the relevant tax authority or your independent taxation advisor.

What if my tax jurisdiction(s) does not issue TINs or equivalents?   
If you're a tax resident in a jurisdiction that doesn't issue a TIN or equivalent, you'll need to give evidence of this, written in English from an appropriate authority.
What are ‘beneficial owners and/or controlling persons’?
Beneficial Owner/Controlling Person refers to the individual(s) who directly or indirectly owns a legal interest in the entity of 25% or more and/or exercises effective control over the entity, whether from an economic or other perspective, such as through voting rights. In addition, in the case of a trust, a Beneficial Owner/Controlling Person includes the settlor(s), trustee(s), appointer(s), protector(s), beneficiary(ies) or classes of beneficiaries and in the case of an entity other than a trust, the term includes persons in equivalent or similar positions.

More information about FATCA/CRS

If you want to know more about FATCA/CRS regulations then please visit the below links:  

FATCA 
Internal Revenue Service | An official website of the United States government (irs.gov)

CRS
•    International Standards for Automatic Exchange of Information in Tax Matters | OECD 
•    Centre for Tax Policy & Administration

If you need to get in touch with us, visit our Contact Us page for more details.