Agreement between the Government of the United States of America and the Government
of New Zealand to Improve International Tax Compliance and to Implement FATCA
Whereas, the Government of the United States of America and the Government of New Zealand
(each, a “Party,” and together, the “Parties”) have a longstanding and close relationship with
respect to mutual assistance in tax matters and desire to conclude an agreement to improve
international tax compliance by further building on that relationship;
Whereas, Article 25 of the Convention between the United States of America and New Zealand
for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to
Taxes on Income, together with a related Protocol, done at Wellington on July 23, 1982, as
amended by a Protocol, done at Washington on December 1, 2008 (the “Convention”) authorizes
exchange of information for tax purposes, including on an automatic basis;
Whereas, the United States of America enacted provisions commonly known as the Foreign
Account Tax Compliance Act (“FATCA”), which introduce a reporting regime for financial
institutions with respect to certain accounts;
Whereas, the Government of New Zealand is supportive of the underlying policy goal of FATCA
to improve tax compliance;
Whereas, FATCA has raised a number of issues, including that New Zealand financial
institutions may not be able to comply with certain aspects of FATCA due to domestic legal
impediments;
Whereas, the Government of the United States of America collects information regarding certain
accounts maintained by U.S. financial institutions held by residents of New Zealand and is
committed to exchanging such information with the Government of New Zealand and pursuing
equivalent levels of exchange;
Whereas, the Parties are committed to working together over the longer term towards achieving
common reporting and due diligence standards for financial institutions;
Whereas, the Government of the United States of America acknowledges the need to coordinate
the reporting obligations under FATCA with other U.S. tax reporting obligations of New Zealand
financial institutions to avoid duplicative reporting;
Whereas, an intergovernmental approach to FATCA implementation would address legal
impediments and reduce burdens for New Zealand financial institutions;
Whereas, the Parties desire to conclude an agreement to improve international tax compliance
and provide for the implementation of FATCA based on domestic reporting and reciprocal
automatic exchange pursuant to the Convention and subject to the confidentiality and other
protections provided for therein, including the provisions limiting the use of the information
exchanged under the Convention;
Now, therefore, the Parties have agreed as follows:
Article 1
Definitions
1. For purposes of this agreement and any annexes thereto (“Agreement”), the following
terms shall have the meanings set forth below:
a) The term “United States” means the United States of America, including the
States thereof, but does not include the U.S. Territories. Any reference to a
“State” of the United States includes the District of Columbia.
b) The term “U.S. Territory” means American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or the U.S.
Virgin Islands.
c) The term “IRS” means the U.S. Internal Revenue Service.
d) The term “New Zealand” means the territory of New Zealand but does not
include Tokelau.
e) The term “Partner Jurisdiction” means a jurisdiction that has in effect an
agreement with the United States to facilitate the implementation of FATCA. The
IRS shall publish a list identifying all Partner Jurisdictions.
f) The term “Competent Authority” means:
(1) in the case of the United States, the Secretary of the Treasury or a delegate
of the Secretary; and
(2) in the case of New Zealand, the Commissioner of Inland Revenue or an
authorised representative of the Commissioner.
g) The term “Financial Institution” means a Custodial Institution, a Depository
Institution, an Investment Entity, or a Specified Insurance Company.
h) The term “Custodial Institution” means any Entity that holds, as a substantial
portion of its business, financial assets for the account of others. An entity holds
financial assets for the account of others as a substantial portion of its business if
the entity’s gross income attributable to the holding of financial assets and related
financial services equals or exceeds 20 percent of the entity’s gross income during
the shorter of: (i) the three-year period that ends on December 31 (or the final day
of a non-calendar year accounting period) prior to the year in which the
determination is being made; or (ii) the period during which the entity has been in
existence.
i) The term “Depository Institution” means any Entity that accepts deposits in the
ordinary course of a banking or similar business.
j) The term “Investment Entity” means any Entity that conducts as a business (or
is managed by an entity that conducts as a business) one or more of the following
activities or operations for or on behalf of a customer:
(1) trading in money market instruments (cheques, bills, certificates of
deposit, derivatives, etc.); foreign exchange; exchange, interest rate and
index instruments; transferable securities; or commodity futures trading;
(2) individual and collective portfolio management; or
(3) otherwise investing, administering, or managing funds or money on behalf
of other persons.
This subparagraph 1(j) shall be interpreted in a manner consistent with similar
language set forth in the definition of “financial institution” in the Financial
Action Task Force Recommendations.
k) The term “Specified Insurance Company” means any Entity that is an insurance
company (or the holding company of an insurance company) that issues, or is
obligated to make payments with respect to, a Cash Value Insurance Contract or
an Annuity Contract.
l) The term “New Zealand Financial Institution” means (i) any Financial
Institution resident in New Zealand, but excluding any branch of such Financial
Institution that is located outside New Zealand; and (ii) any branch of a Financial
Institution not resident in New Zealand, if such branch is located in New Zealand.
m) The term “Partner Jurisdiction Financial Institution” means (i) any Financial
Institution established in a Partner Jurisdiction, but excluding any branch of such
Financial Institution that is located outside the Partner Jurisdiction; and (ii) any
branch of a Financial Institution not established in the Partner Jurisdiction, if such
branch is located in the Partner Jurisdiction.
n) The term “Reporting Financial Institution” means a Reporting New Zealand
Financial Institution or a Reporting U.S. Financial Institution, as the context
requires.
o) The term “Reporting New Zealand Financial Institution” means any New
Zealand Financial Institution that is not a Non-Reporting New Zealand Financial
Institution.
p) The term “Reporting U.S. Financial Institution” means (i) any Financial
Institution that is resident in the United States, but excluding any branch of such
Financial Institution that is located outside the United States; and (ii) any branch
of a Financial Institution not resident in the United States, if such branch is
located in the United States, provided that the Financial Institution or branch has
control, receipt, or custody of income with respect to which information is
required to be exchanged under subparagraph (2)(b) of Article 2 of this
Agreement.
q) The term “Non-Reporting New Zealand Financial Institution” means any New
Zealand Financial Institution, or other Entity resident in New Zealand that is
described in Annex II as a Non-Reporting New Zealand Financial Institution or
that otherwise qualifies as a deemed-compliant FFI or an exempt beneficial owner
under relevant U.S. Treasury Regulations.
r) The term “Nonparticipating Financial Institution” means a nonparticipating
FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not
include a New Zealand Financial Institution or other Partner Jurisdiction Financial
Institution other than a Financial Institution treated as a Nonparticipating
Financial Institution pursuant to subparagraph 2(b) of Article 5 of this Agreement
or the corresponding provision in an agreement between the United States and a
Partner Jurisdiction.
s) The term “Financial Account” means an account maintained by a Financial
Institution, and includes:
(1) in the case of an Entity that is a Financial Institution solely because it is an
Investment Entity, any equity or debt interest (other than interests that are
regularly traded on an established securities market) in the Financial
Institution;
(2) in the case of a Financial Institution not described in subparagraph 1(s)(1)
of this Article, any equity or debt interest in the Financial Institution (other
than interests that are regularly traded on an established securities market),
if (i) the value of the debt or equity interest is determined, directly or
indirectly, primarily by reference to assets that give rise to U.S. Source
Withholdable Payments; and (ii) the class of interests was established with
a purpose of avoiding reporting in accordance with this Agreement; and
(3) any Cash Value Insurance Contract and any Annuity Contract issued or
maintained by a Financial Institution, other than a noninvestment-linked,
nontransferable immediate life annuity that is issued to an individual and
monetizes a pension or disability benefit provided under an account,
product, or arrangement that is excluded from the definition of Financial
Account in Annex II.
Notwithstanding the foregoing, the term “Financial Account” does not include
any account, product, or arrangement that is excluded from the definition of
Financial Account in Annex II. For purposes of this Agreement, interests are
“regularly traded” if there is a meaningful volume of trading with respect to the
interests on an ongoing basis, and an “established securities market” means an
exchange that is officially recognized and supervised by a governmental authority
in which the market is located and that has a meaningful annual value of shares
traded on the exchange. For purposes of this subparagraph 1(s), an interest in a
Financial Institution is not “regularly traded” and shall be treated as a Financial
Account if the holder of the interest (other than a Financial Institution acting as an
intermediary) is registered on the books of such Financial Institution. The
preceding sentence will not apply to interests first registered on the books of such
Financial Institution prior to July 1, 2014, and with respect to interests first
registered on the books of such Financial Institution on or after July 1, 2014, a
Financial Institution is not required to apply the preceding sentence prior to
January 1, 2016.
t) The term “Depository Account” includes any commercial, checking, savings,
time, or thrift account, or an account that is evidenced by a certificate of deposit,
thrift certificate, investment certificate, certificate of indebtedness, or other
similar instrument maintained by a Financial Institution in the ordinary course of
a banking or similar business. A Depository Account also includes an amount
held by an insurance company pursuant to a guaranteed investment contract or
similar agreement to pay or credit interest thereon.
u) The term “Custodial Account” means an account (other than an Insurance
Contract or Annuity Contract) for the benefit of another person that holds any
financial instrument or contract held for investment (including, but not limited to,
a share or stock in a corporation, a note, bond, debenture, or other evidence of
indebtedness, a currency or commodity transaction, a credit default swap, a swap
based upon a nonfinancial index, a notional principal contract, an Insurance
Contract or Annuity Contract, and any option or other derivative instrument).
v) The term “Equity Interest” means, in the case of a partnership that is a Financial
Institution, either a capital or profits interest in the partnership. In the case of a
trust that is a Financial Institution, an Equity Interest is considered to be held by
any person treated as a settlor or beneficiary of all or a portion of the trust, or any
other natural person exercising ultimate effective control over the trust. A
Specified U.S. Person shall be treated as being a beneficiary of a foreign trust if
such Specified U.S. Person has the right to receive directly or indirectly (for
example, through a nominee) a mandatory distribution or may receive, directly or
indirectly, a discretionary distribution from the trust.
w) The term “Insurance Contract” means a contract (other than an Annuity
Contract) under which the issuer agrees to pay an amount upon the occurrence of
a specified contingency involving mortality, morbidity, accident, liability, or
property risk.
x) The term “Annuity Contract” means a contract under which the issuer agrees to
make payments for a period of time determined in whole or in part by reference to
the life expectancy of one or more individuals. The term also includes a contract
that is considered to be an Annuity Contract in accordance with the law,
regulation, or practice of the jurisdiction in which the contract was issued, and
under which the issuer agrees to make payments for a term of years.
y) The term “Cash Value Insurance Contract” means an Insurance Contract (other
than an indemnity reinsurance contract between two insurance companies) that
has a Cash Value greater than $50,000.
z) The term “Cash Value” means the greater of (i) the amount that the policyholder
is entitled to receive upon surrender or termination of the contract (determined
without reduction for any surrender charge or policy loan), and (ii) the amount the
policyholder can borrow under or with regard to the contract. Notwithstanding
the foregoing, the term “Cash Value” does not include an amount payable under
an Insurance Contract as:
(1) a personal injury or sickness benefit or other benefit providing
indemnification of an economic loss incurred upon the occurrence of the
event insured against;
(2) a refund to the policyholder of a previously paid premium under an
Insurance Contract (other than under a life insurance contract) due to
policy cancellation or termination, decrease in risk exposure during the
effective period of the Insurance Contract, or arising from a
redetermination of the premium due to correction of posting or other
similar error; or
(3) a policyholder dividend based upon the underwriting experience of the
contract or group involved.
aa) The term “Reportable Account” means a U.S. Reportable Account or a New
Zealand Reportable Account, as the context requires.
bb) The term “New Zealand Reportable Account” means a Financial Account
maintained by a Reporting U.S. Financial Institution if: (i) in the case of a
Depository Account, the account is held by an individual resident in New Zealand
and more than $10 of interest is paid to such account in any given calendar year;
or (ii) in the case of a Financial Account other than a Depository Account, the
Account Holder is a resident of New Zealand, including an Entity that certifies
that it is resident in New Zealand for tax purposes, with respect to which U.S.
source income that is subject to reporting under chapter 3 of subtitle A or chapter
61 of subtitle F of the U.S. Internal Revenue Code is paid or credited.
cc) The term “U.S. Reportable Account” means a Financial Account maintained by
a Reporting New Zealand Financial Institution and held by one or more Specified
U.S. Persons or by a Non-U.S. Entity with one or more Controlling Persons that is
a Specified U.S. Person. Notwithstanding the foregoing, an account shall not be
treated as a U.S. Reportable Account if such account is not identified as a U.S.
Reportable Account after application of the due diligence procedures in Annex I.
dd) The term “Account Holder” means the person listed or identified as the holder of
a Financial Account by the Financial Institution that maintains the account. A
person, other than a Financial Institution, holding a Financial Account for the
benefit or account of another person as agent, custodian, nominee, signatory,
investment advisor, or intermediary, is not treated as holding the account for
purposes of this Agreement, and such other person is treated as holding the
account. For purposes of the immediately preceding sentence, the term “Financial
Institution” does not include a Financial Institution organized or incorporated in a
U.S. Territory. In the case of a Cash Value Insurance Contract or an Annuity
Contract, the Account Holder is any person entitled to access the Cash Value or
change the beneficiary of the contract. If no person can access the Cash Value or
change the beneficiary, the Account Holder is any person named as the owner in
the contract and any person with a vested entitlement to payment under the terms
of the contract. Upon the maturity of a Cash Value Insurance Contract or an
Annuity Contract, each person entitled to receive a payment under the contract is
treated as an Account Holder.
ee) The term “U.S. Person” means a U.S. citizen or resident individual, a partnership
or corporation organized in the United States or under the laws of the United
States or any State thereof, a trust if (i) a court within the United States would
have authority under applicable law to render orders or judgments concerning
substantially all issues regarding administration of the trust; and (ii) one or more
U.S. persons have the authority to control all substantial decisions of the trust, or
an estate of a decedent that is a citizen or resident of the United States. This
subparagraph 1(ee) shall be interpreted in accordance with the U.S. Internal
Revenue Code.
ff) The term “Specified U.S. Person” means a U.S. Person, other than: (i) a
corporation the stock of which is regularly traded on one or more established
securities markets; (ii) any corporation that is a member of the same expanded
affiliated group, as defined in section 1471(e)(2) of the U.S. Internal Revenue
Code, as a corporation described in clause (i); (iii) the United States or any wholly
owned agency or instrumentality thereof; (iv) any State of the United States, any
U.S. Territory, any political subdivision of any of the foregoing, or any wholly
owned agency or instrumentality of any one or more of the foregoing; (v) any
organization exempt from taxation under section 501(a) of the U.S. Internal
Revenue Code or an individual retirement plan as defined in section 7701(a)(37)
of the U.S. Internal Revenue Code; (vi) any bank as defined in section 581 of the
U.S. Internal Revenue Code; (vii) any real estate investment trust as defined in
section 856 of the U.S. Internal Revenue Code; (viii) any regulated investment
company as defined in section 851 of the U.S. Internal Revenue Code or any
entity registered with the U.S. Securities and Exchange Commission under the
Investment Company Act of 1940 (15 U.S.C. 80a-64); (ix) any common trust fund
as defined in section 584(a) of the U.S. Internal Revenue Code; (x) any trust that
is exempt from tax under section 664(c) of the U.S. Internal Revenue Code or that
is described in section 4947(a)(1) of the U.S. Internal Revenue Code; (xi) a dealer
in securities, commodities, or derivative financial instruments (including notional
principal contracts, futures, forwards, and options) that is registered as such under
the laws of the United States or any State; (xii) a broker as defined in section
6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust under a
plan that is described in section 403(b) or section 457(b) of the U.S. Internal
Revenue Code.
gg) The term “Entity” means a legal person or a legal arrangement such as a trust.
hh) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person.
ii) The term “U.S. Source Withholdable Payment” means any payment of interest
(including any original issue discount), dividends, rents, salaries, wages,
premiums, annuities, compensations, remunerations, emoluments, and other fixed
or determinable annual or periodical gains, profits, and income, if such payment is
from sources within the United States. Notwithstanding the foregoing, a U.S.
Source Withholdable Payment does not include any payment that is not treated as
a withholdable payment in relevant U.S. Treasury Regulations.
jj) An Entity is a “Related Entity” of another Entity if either Entity controls the
other Entity, or the two Entities are under common control. For this purpose
control includes direct or indirect ownership of more than 50 percent of the vote
or value in an Entity. Notwithstanding the foregoing, New Zealand may treat an
Entity as not a Related Entity of another Entity if the two Entities are not
members of the same expanded affiliated group as defined in section 1471(e)(2)
of the U.S. Internal Revenue Code.
kk) The term “U.S. TIN” means a U.S. federal taxpayer identifying number.
ll) The term “New Zealand TIN” means a New Zealand taxpayer identifying
number.
mm) The term “Controlling Persons” means the natural persons who exercise control
over an Entity. In the case of a trust, such term means the settlor, the trustees, the
protector (if any), the beneficiaries or class of beneficiaries, and any other natural
person exercising ultimate effective control over the trust, and in the case of a
legal arrangement other than a trust, such term means persons in equivalent or
similar positions. The term “Controlling Persons” shall be interpreted in a
manner consistent with the Financial Action Task Force Recommendations.
2. Any term not otherwise defined in this Agreement shall, unless the context otherwise
requires or the Competent Authorities agree to a common meaning (as permitted by domestic
law), have the meaning that it has at that time under the law of the Party applying this
Agreement, any meaning under the applicable tax laws of that Party prevailing over a meaning
given to the term under other laws of that Party.
Article 2
Obligations to Obtain and Exchange Information with Respect to Reportable Accounts
1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the
information specified in paragraph 2 of this Article with respect to all Reportable Accounts and
shall annually exchange this information with the other Party on an automatic basis pursuant to
the provisions of Article 25 of the Convention.
2. The information to be obtained and exchanged is:
a) In the case of New Zealand with respect to each U.S. Reportable Account of each
Reporting New Zealand Financial Institution:
(1) the name, address, and U.S. TIN of each Specified U.S. Person that is an
Account Holder of such account and, in the case of a Non-U.S. Entity that,
after application of the due diligence procedures set forth in Annex I, is
identified as having one or more Controlling Persons that is a Specified
U.S. Person, the name, address, and U.S. TIN (if any) of such entity and
each such Specified U.S. Person;
(2) the account number (or functional equivalent in the absence of an account
number);
(3) the name and identifying number of the Reporting New Zealand Financial
Institution;
(4) the account balance or value (including, in the case of a Cash Value
Insurance Contract or Annuity Contract, the Cash Value or surrender
value) as of the end of the relevant calendar year or other appropriate
reporting period or, if the account was closed during such year,
immediately before closure;
(5) in the case of any Custodial Account:
(A) the total gross amount of interest, the total gross amount of
dividends, and the total gross amount of other income generated
with respect to the assets held in the account, in each case paid or
credited to the account (or with respect to the account) during the
calendar year or other appropriate reporting period; and
(B) the total gross proceeds from the sale or redemption of property
paid or credited to the account during the calendar year or other
appropriate reporting period with respect to which the Reporting
New Zealand Financial Institution acted as a custodian, broker,
nominee, or otherwise as an agent for the Account Holder;
(6) in the case of any Depository Account, the total gross amount of interest
paid or credited to the account during the calendar year or other
appropriate reporting period; and
(7) in the case of any account not described in subparagraph 2(a)(5) or 2(a)(6)
of this Article, the total gross amount paid or credited to the Account
Holder with respect to the account during the calendar year or other
appropriate reporting period with respect to which the Reporting New
Zealand Financial Institution is the obligor or debtor, including the
aggregate amount of any redemption payments made to the Account
Holder during the calendar year or other appropriate reporting period.
b) In the case of the United States, with respect to each New Zealand Reportable
Account of each Reporting U.S. Financial Institution:
(1) the name, address, and New Zealand TIN of any person that is a resident
of New Zealand and is an Account Holder of the account;
(2) the account number (or the functional equivalent in the absence of an
account number);
(3) the name and identifying number of the Reporting U.S. Financial
Institution;
(4) the gross amount of interest paid on a Depository Account;
(5) the gross amount of U.S. source dividends paid or credited to the account;
and
(6) the gross amount of other U.S. source income paid or credited to the
account, to the extent subject to reporting under chapter 3 of subtitle A or
chapter 61 of subtitle F of the U.S. Internal Revenue Code.
Article 3
Time and Manner of Exchange of Information
1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount and
characterization of payments made with respect to a U.S. Reportable Account may be determined
in accordance with the principles of the tax laws of New Zealand, and the amount and
characterization of payments made with respect to a New Zealand Reportable Account may be
determined in accordance with principles of U.S. federal income tax law.
2. For purposes of the exchange obligation in Article 2 of this Agreement, the information
exchanged shall identify the currency in which each relevant amount is denominated.
3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be obtained
and exchanged with respect to 2014 and all subsequent years, except that:
a) In the case of New Zealand:
(1) the information to be obtained and exchanged with respect to 2014 is the
information described in subparagraphs 2(a)(1) through 2(a)(4) of Article
2 of this Agreement;
(2) the information to be obtained and exchanged with respect to 2015 is the
information described in subparagraphs 2(a)(1) through 2(a)(7) of Article
2 of this Agreement, except for gross proceeds described in subparagraph
2(a)(5)(B) of Article 2 of this Agreement; and
(3) the information to be obtained and exchanged with respect to 2016 and
subsequent years is the information described in subparagraphs 2(a)(1)
through 2(a)(7) of Article 2 of this Agreement;
b) In the case of the United States, the information to be obtained and exchanged
with respect to 2014 and subsequent years is all of the information identified in
subparagraph 2(b) of Article 2 of this Agreement.
4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account that
is maintained by a Reporting Financial Institution as of June 30, 2014, and subject to paragraph 4
of Article 6 of this Agreement, the Parties are not required to obtain and include in the exchanged
information the New Zealand TIN or the U.S. TIN, as applicable, of any relevant person if such
taxpayer identifying number is not in the records of the Reporting Financial Institution. In such
a case, the Parties shall obtain and include in the exchanged information the date of birth of the
relevant person, if the Reporting Financial Institution has such date of birth in its records.
5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of this
Agreement shall be exchanged within nine months after the end of the calendar year to which the
information relates.
6. The Competent Authorities of New Zealand and the United States shall enter into an
arrangement under the mutual agreement procedure provided for in Article 24 of the Convention,
which shall:
a) establish the procedures for the automatic exchange obligations described in
Article 2 of this Agreement;
b) prescribe rules and procedures as may be necessary to implement Article 5 of this
Agreement; and
c) establish as necessary procedures for the exchange of the information reported
under subparagraph 1(b) of Article 4 of this Agreement.
7. All information exchanged shall be subject to the confidentiality and other protections
provided for in the Convention, including the provisions limiting the use of the information
exchanged.
Article 4
Application of FATCA to New Zealand Financial Institutions
1. Treatment of Reporting New Zealand Financial Institutions. Each Reporting New
Zealand Financial Institution shall be treated as complying with, and not subject to withholding
under, section 1471 of the U.S. Internal Revenue Code if New Zealand complies with its
obligations under Articles 2 and 3 of this Agreement with respect to such Reporting New
Zealand Financial Institution, and the Reporting New Zealand Financial Institution:
a) identifies U.S. Reportable Accounts and reports annually to the New Zealand
Competent Authority the information required to be reported in subparagraph 2(a)
of Article 2 of this Agreement in the time and manner described in Article 3 of
this Agreement;
b) for each of 2015 and 2016, reports annually to the New Zealand Competent
Authority the name of each Nonparticipating Financial Institution to which it has
made payments and the aggregate amount of such payments;
c) complies with the applicable registration requirements on the IRS FATCA
registration website;
d) to the extent that a Reporting New Zealand Financial Institution is (i) acting as a
qualified intermediary (for purposes of section 1441 of the U.S. Internal Revenue
Code) that has elected to assume primary withholding responsibility under chapter
3 of subtitle A of the U.S. Internal Revenue Code; (ii) a foreign partnership that
has elected to act as a withholding foreign partnership (for purposes of both
sections 1441 and 1471 of the U.S. Internal Revenue Code); or (iii) a foreign trust
that has elected to act as a withholding foreign trust (for purposes of both sections
1441 and 1471 of the U.S. Internal Revenue Code), withholds 30 percent of any
U.S. Source Withholdable Payment to any Nonparticipating Financial Institution;
and
e) in the case of a Reporting New Zealand Financial Institution that is not described
in subparagraph 1(d) of this Article and that makes a payment of, or acts as an
intermediary with respect to, a U.S. Source Withholdable Payment to any
Nonparticipating Financial Institution, the Reporting New Zealand Financial
Institution provides to any immediate payor of such U.S. Source Withholdable
Payment the information required for withholding and reporting to occur with
respect to such payment.
Notwithstanding the foregoing, a Reporting New Zealand Financial Institution with respect to
which the conditions of this paragraph 1 are not satisfied shall not be subject to withholding
under section 1471 of the U.S. Internal Revenue Code unless such Reporting New Zealand
Financial Institution is treated by the IRS as a Nonparticipating Financial Institution pursuant to
subparagraph 2(b) of Article 5 of this Agreement.
2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall not
require a Reporting New Zealand Financial Institution to withhold tax under section 1471 or
1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account
holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such
account, if the U.S. Competent Authority receives the information set forth in subparagraph 2(a)
of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement, with
respect to such account.
3. Specific Treatment of New Zealand Retirement Plans. The United States shall treat as
deemed-compliant FFIs or exempt beneficial owners, as appropriate, for purposes of sections
1471 and 1472 of the U.S. Internal Revenue Code New Zealand retirement plans described in
Annex II. For this purpose, a New Zealand retirement plan includes an Entity established or
located in, and regulated by, New Zealand, or a predetermined contractual or legal arrangement,
operated to provide pension or retirement benefits or earn income for providing such benefits
under the laws of New Zealand and regulated with respect to contributions, distributions,
reporting, sponsorship, and taxation.
4. Identification and Treatment of Other Deemed-Compliant FFIs and Exempt
Beneficial Owners. The United States shall treat each Non-Reporting New Zealand Financial
Institution as a deemed-compliant FFI or as an exempt beneficial owner, as appropriate, for
purposes of section 1471 of the U.S. Internal Revenue Code.
5. Special Rules Regarding Related Entities and Branches That Are Nonparticipating
Financial Institutions. If a New Zealand Financial Institution, that otherwise meets the
requirements described in paragraph 1 of this Article or is described in paragraph 3 or 4 of this
Article, has a Related Entity or branch that operates in a jurisdiction that prevents such Related
Entity or branch from fulfilling the requirements of a participating FFI or deemed-compliant FFI
for purposes of section 1471 of the U.S. Internal Revenue Code or has a Related Entity or branch
that is treated as a Nonparticipating Financial Institution solely due to the expiration of the
transitional rule for limited FFIs and limited branches under relevant U.S. Treasury Regulations,
such New Zealand Financial Institution shall continue to be in compliance with the terms of this
Agreement and shall continue to be treated as a deemed-compliant FFI or exempt beneficial
owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code, provided
that:
a) the New Zealand Financial Institution treats each such Related Entity or branch as
a separate Nonparticipating Financial Institution for purposes of all the reporting
and withholding requirements of this Agreement and each such Related Entity or
branch identifies itself to withholding agents as a Nonparticipating Financial
Institution;
b) each such Related Entity or branch identifies its U.S. accounts and reports the
information with respect to those accounts as required under section 1471 of the
U.S. Internal Revenue Code to the extent permitted under the relevant laws
pertaining to the Related Entity or branch; and
c) such Related Entity or branch does not specifically solicit U.S. accounts held by
persons that are not resident in the jurisdiction where such Related Entity or
branch is located or accounts held by Nonparticipating Financial Institutions that
are not established in the jurisdiction where such Related Entity or branch is
located, and such Related Entity or branch is not used by the New Zealand
Financial Institution or any other Related Entity to circumvent the obligations
under this Agreement or under section 1471 of the U.S. Internal Revenue Code, as
appropriate.
6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of this
Agreement:
a) New Zealand shall not be obligated to obtain and exchange information with
respect to a calendar year that is prior to the calendar year with respect to which
similar information is required to be reported to the IRS by participating FFIs
pursuant to relevant U.S. Treasury Regulations;
b) New Zealand shall not be obligated to begin exchanging information prior to the
date by which participating FFIs are required to report similar information to the
IRS under relevant U.S. Treasury Regulations;
c) the United States shall not be obligated to obtain and exchange information with
respect to a calendar year that is prior to the first calendar year with respect to
which New Zealand is required to obtain and exchange information; and
d) the United States shall not be obligated to begin exchanging information prior to
the date by which New Zealand is required to begin exchanging information.
7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding Article
1 of this Agreement and the definitions provided in the Annexes to this Agreement, in
implementing this Agreement, New Zealand may use, and may permit New Zealand Financial
Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding
definition in this Agreement, provided that such application would not frustrate the purposes of
this Agreement.
Article 5
Collaboration on Compliance and Enforcement
1. Minor and Administrative Errors. Subject to any further terms set forth in a competent
authority arrangement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the
Competent Authority of the United States may make an inquiry directly to a Reporting Financial
Institution in New Zealand where it has reason to believe that minor or administrative errors may
have led to incorrect or incomplete information reporting or resulted in other infringements of
this Agreement. The competent authority arrangement may provide that the Competent
Authority of the United States shall notify the Competent Authority of New Zealand when it
makes such an inquiry of a Reporting Financial Institution in New Zealand regarding the
Reporting Financial Institution’s compliance with the conditions set forth in this Agreement. The
Competent Authority of New Zealand shall notify the Competent Authority of the United States
where it has reason to believe that minor or administrative errors may have led to incorrect or
incomplete reporting or resulted in other infringements of this Agreement. The Competent
Authority of each Party shall apply its domestic law to obtain corrected and/or complete
information or to resolve other infringements of this Agreement.
2. Significant Non-Compliance.
a) A Competent Authority shall notify the Competent Authority of the other Party
when the first-mentioned Competent Authority has determined that there is
significant non-compliance with the obligations under this Agreement with
respect to a Reporting Financial Institution in the other jurisdiction. The
Competent Authority of such other Party shall apply its domestic law (including
applicable penalties) to address the significant non-compliance described in the
notice.
b) If, in the case of a Reporting New Zealand Financial Institution, such enforcement
actions do not resolve the non-compliance within a period of 18 months after
notification of significant non-compliance is first provided, the United States shall
treat the Reporting New Zealand Financial Institution as a Nonparticipating
Financial Institution pursuant to this subparagraph 2(b).
3. Reliance on Third Party Service Providers. Each Party may allow Reporting Financial
Institutions to use third party service providers to fulfill the obligations imposed on such
Reporting Financial Institutions by a Party, as contemplated in this Agreement, but these
obligations shall remain the responsibility of the Reporting Financial Institutions.
4. Prevention of Avoidance. The Parties shall implement as necessary requirements to
prevent Financial Institutions from adopting practices intended to circumvent the reporting
required under this Agreement.
Article 6
Mutual Commitment to Continue to Enhance the Effectiveness of Information Exchange
and Transparency
1. Reciprocity. The Government of the United States acknowledges the need to achieve
equivalent levels of reciprocal automatic information exchange with the Government of New
Zealand. The Government of the United States is committed to further improve transparency and
enhance the exchange relationship with New Zealand by pursuing the adoption of regulations
and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal
automatic information exchange.
2. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to
work together, along with Partner Jurisdictions, to develop a practical and effective alternative
approach to achieve the policy objectives of foreign passthru payment and gross proceeds
withholding that minimizes burden.
3. Development of Common Reporting and Exchange Model. The Parties are committed
to working with Partner Jurisdictions and the Organisation for Economic Co-operation and
Development on adapting the terms of this Agreement and other agreements between the United
States and Partner Jurisdictions to a common model for automatic exchange of information,
including the development of reporting and due diligence standards for financial institutions.
4. Documentation of Accounts Maintained as of June 30, 2014. With respect to
Reportable Accounts maintained by a Reporting Financial Institution as of June 30, 2014:
a) The United States commits to establish, by January 1, 2017, for reporting with
respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial
Institutions to obtain and report the New Zealand TIN of each Account Holder of
a New Zealand Reportable Account as required pursuant to subparagraph 2(b)(1)
of Article 2 of this Agreement; and
b) New Zealand commits to establish, by January 1, 2017, for reporting with respect
to 2017 and subsequent years, rules requiring Reporting New Zealand Financial
Institutions to obtain the U.S. TIN of each Specified U.S. Person as required
pursuant to subparagraph 2(a)(1) of Article 2 of this Agreement.
Article 7
Consistency in the Application of FATCA to Partner Jurisdictions
1. New Zealand shall be granted the benefit of any more favorable terms under Article 4 or
Annex I of this Agreement relating to the application of FATCA to New Zealand Financial
Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement pursuant
to which the other Partner Jurisdiction commits to undertake the same obligations as New
Zealand described in Articles 2 and 3 of this Agreement, and subject to the same terms and
conditions as described therein and in Articles 5 through 9 of this Agreement.
2. The United States shall notify New Zealand of any such more favorable terms, and such
more favorable terms shall apply automatically under this Agreement as if such terms were
specified in this Agreement and effective as of the date of the signing of the agreement
incorporating the more favorable terms, unless New Zealand declines in writing the application
thereof.
Article 8
Consultations and Amendments
1. In case any difficulties in the implementation of this Agreement arise, either Party may
request consultations to develop appropriate measures to ensure the fulfillment of this
Agreement.
2. This Agreement may be amended by written mutual agreement of the Parties. Unless
otherwise agreed upon, such an amendment shall enter into force through the same procedures as
set forth in paragraph 1 of Article 10 of this Agreement.
Article 9
Annexes
The Annexes form an integral part of this Agreement.
Article 10
Term of Agreement
1. The Parties shall notify each other in writing when their necessary internal procedures for
entry into force have been completed. The Agreement shall enter into force on the date of the
later of such notifications, and shall continue in force until terminated.
2. Either Party may terminate this Agreement by giving notice of termination in writing to
the other Party. Such termination shall become effective on the first day of the month following
the expiration of a period of 12 months after the date of the notice of termination.
3. The Parties shall, prior to December 31, 2016, consult in good faith to amend this
Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this
Agreement.
In witness whereof, the undersigned, being duly authorized thereto by their respective
Governments, have signed this Agreement.
Done at _____, in duplicate in the English language, this __ day of _____, 20__.
FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA:
FOR THE GOVERNMENT OF NEW
ZEALAND:
ANNEX I
DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S.
REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN
NONPARTICIPATING FINANCIAL INSTITUTIONS
I. General
A. New Zealand shall require that Reporting New Zealand Financial
Institutions apply the due diligence procedures contained in this Annex I to
identify U.S. Reportable Accounts and accounts held by Nonparticipating
Financial Institutions.
B. For purposes of the Agreement,
1. All dollar amounts are in U.S. dollars and shall be read to include
the equivalent in other currencies.
2. Except as otherwise provided herein, the balance or value of an
account shall be determined as of the last day of the calendar year
or other appropriate reporting period.
3. Where a balance or value threshold is to be determined as of June
30, 2014 under this Annex I, the relevant balance or value shall be
determined as of that day, and where a balance or value threshold
is to be determined as of the last day of a calendar year under this
Annex I, the relevant balance or value shall be determined as of the
last day of the calendar year or other appropriate reporting period.
4. Subject to subparagraph E(1) of section II of this Annex I, an
account shall be treated as a U.S. Reportable Account beginning as
of the date it is identified as such pursuant to the due diligence
procedures in this Annex I.
5. Unless otherwise provided, information with respect to a U.S.
Reportable Account shall be reported annually in the calendar year
following the year to which the information relates.
C. As an alternative to the procedures described in each section of this Annex
I, New Zealand may permit Reporting New Zealand Financial Institutions to rely
on the procedures described in relevant U.S. Treasury Regulations to establish
whether an account is a U.S. Reportable Account or an account held by a
Nonparticipating Financial Institution. New Zealand may permit Reporting New
Zealand Financial Institutions to make such election separately for each section of
this Annex I either with respect to all relevant Financial Accounts or, separately,
with respect to any clearly identified group of such accounts (such as by line of
business or the location of where the account is maintained).
II. Preexisting Individual Accounts. The following rules and procedures apply for
purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by
individuals (“Preexisting Individual Accounts”).
A. Accounts Not Required to Be Reviewed, Identified, or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either
with respect to all Preexisting Individual Accounts or, separately, with respect to
any clearly identified group of such accounts, where the implementing rules in
New Zealand provide for such an election, the following Preexisting Individual
Accounts are not required to be reviewed, identified, or reported as U.S.
Reportable Accounts:
1. Subject to subparagraph E(2) of this section, a Preexisting
Individual Account with a balance or value that does not exceed
$50,000 as of June 30, 2014.
2. Subject to subparagraph E(2) of this section, a Preexisting
Individual Account that is a Cash Value Insurance Contract or an
Annuity Contract with a balance or value of $250,000 or less as of
June 30, 2014.
3. A Preexisting Individual Account that is a Cash Value Insurance
Contract or an Annuity Contract, provided the law or regulations of
New Zealand or the United States effectively prevent the sale of
such a Cash Value Insurance Contract or an Annuity Contract to
U.S. residents (e.g., if the relevant Financial Institution does not
have the required registration under U.S. law, and the law of New
Zealand requires reporting or withholding with respect to insurance
products held by residents of New Zealand).
4. A Depository Account with a balance of $50,000 or less.
B. Review Procedures for Preexisting Individual Accounts With a
Balance or Value as of June 30, 2014, that Exceeds $50,000 ($250,000 for a
Cash Value Insurance Contract or Annuity Contract), But Does Not Exceed
$1,000,000 (“Lower Value Accounts”).
1. Electronic Record Search. The Reporting New Zealand Financial
Institution must review electronically searchable data maintained by the
Reporting New Zealand Financial Institution for any of the following U.S.
indicia:
a) Identification of the Account Holder as a U.S. citizen or resident;
b) Unambiguous indication of a U.S. place of birth;
c) Current U.S. mailing or residence address (including a U.S. post
office box);
d) Current U.S. telephone number;
e) Standing instructions to transfer funds to an account maintained in
the United States;
f) Currently effective power of attorney or signatory authority granted
to a person with a U.S. address; or
g) An “in-care-of” or “hold mail” address that is the sole address the
Reporting New Zealand Financial Institution has on file for the
Account Holder. In the case of a Preexisting Individual Account
that is a Lower Value Account, an “in-care-of” address outside the
United States or “hold mail” address shall not be treated as U.S.
indicia.
2. If none of the U.S. indicia listed in subparagraph B(1) of this section are
discovered in the electronic search, then no further action is required until
there is a change in circumstances that results in one or more U.S. indicia
being associated with the account, or the account becomes a High Value
Account described in paragraph D of this section.
3. If any of the U.S. indicia listed in subparagraph B(1) of this section are
discovered in the electronic search, or if there is a change in circumstances
that results in one or more U.S. indicia being associated with the account,
then the Reporting New Zealand Financial Institution must treat the
account as a U.S. Reportable Account unless it elects to apply
subparagraph B(4) of this section and one of the exceptions in such
subparagraph applies with respect to that account.
4. Notwithstanding a finding of U.S. indicia under subparagraph B(1) of this
section, a Reporting New Zealand Financial Institution is not required to
treat an account as a U.S. Reportable Account if:
a) Where the Account Holder information unambiguously indicates a
U.S. place of birth, the Reporting New Zealand Financial
Institution obtains, or has previously reviewed and maintains a
record of:
(1) A self-certification that the Account Holder is neither a U.S.
citizen nor a U.S. resident for tax purposes (which may be
on an IRS Form W-8 or other similar agreed form);
(2) A non-U.S. passport or other government-issued
identification evidencing the Account Holder’s citizenship
or nationality in a country other than the United States; and
(3) A copy of the Account Holder’s Certificate of Loss of
Nationality of the United States or a reasonable explanation
of:
(a) The reason the Account Holder does not have such a
certificate despite relinquishing U.S. citizenship; or
(b) The reason the Account Holder did not obtain U.S.
citizenship at birth.
b) Where the Account Holder information contains a current U.S.
mailing or residence address, or one or more U.S. telephone
numbers that are the only telephone numbers associated with the
account, the Reporting New Zealand Financial Institution obtains,
or has previously reviewed and maintains a record of:
(1) A self-certification that the Account Holder is neither a U.S.
citizen nor a U.S. resident for tax purposes (which may be
on an IRS Form W-8 or other similar agreed form); and
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non-U.S. status.
c) Where the Account Holder information contains standing
instructions to transfer funds to an account maintained in the
United States, the Reporting New Zealand Financial Institution
obtains, or has previously reviewed and maintains a record of:
(1) A self-certification that the Account Holder is neither a U.S.
citizen nor a U.S. resident for tax purposes (which may be
on an IRS Form W-8 or other similar agreed form); and
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non-U.S. status.
d) Where the Account Holder information contains a currently
effective power of attorney or signatory authority granted to a
person with a U.S. address, has an “in-care-of” address or “hold
mail” address that is the sole address identified for the Account
Holder, or has one or more U.S. telephone numbers (if a non-U.S.
telephone number is also associated with the account), the
Reporting New Zealand Financial Institution obtains, or has
previously reviewed and maintains a record of:
(1) A self-certification that the Account Holder is neither a U.S.
citizen nor a U.S. resident for tax purposes (which may be
on an IRS Form W-8 or other similar agreed form); or
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non-U.S. status.
C. Additional Procedures Applicable to Preexisting Individual Accounts
That Are Lower Value Accounts.
1. Review of Preexisting Individual Accounts that are Lower Value Accounts
for U.S. indicia must be completed by June 30, 2016.
2. If there is a change of circumstances with respect to a Preexisting
Individual Account that is a Lower Value Account that results in one or
more U.S. indicia described in subparagraph B(1) of this section being
associated with the account, then the Reporting New Zealand Financial
Institution must treat the account as a U.S. Reportable Account unless
subparagraph B(4) of this section applies.
3. Except for Depository Accounts described in subparagraph A(4) of this
section, any Preexisting Individual Account that has been identified as a
U.S. Reportable Account under this section shall be treated as a U.S.
Reportable Account in all subsequent years, unless the Account Holder
ceases to be a Specified U.S. Person.
D. Enhanced Review Procedures for Preexisting Individual Accounts
With a Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or
December 31 of 2015 or Any Subsequent Year (“High Value Accounts”).
1. Electronic Record Search. The Reporting New Zealand Financial
Institution must review electronically searchable data maintained by the
Reporting New Zealand Financial Institution for any of the U.S. indicia
described in subparagraph B(1) of this section.
2. Paper Record Search. If the Reporting New Zealand Financial
Institution’s electronically searchable databases include fields for, and
capture all of the information described in, subparagraph D(3) of this
section, then no further paper record search is required. If the electronic
databases do not capture all of this information, then with respect to a High
Value Account, the Reporting New Zealand Financial Institution must also
review the current customer master file and, to the extent not contained in
the current customer master file, the following documents associated with
the account and obtained by the Reporting New Zealand Financial
Institution within the last five years for any of the U.S. indicia described in
subparagraph B(1) of this section:
a) The most recent documentary evidence collected with respect to the
account;
b) The most recent account opening contract or documentation;
c) The most recent documentation obtained by the Reporting New
Zealand Financial Institution pursuant to AML/KYC Procedures or
for other regulatory purposes;
d) Any power of attorney or signature authority forms currently in
effect; and
e) Any standing instructions to transfer funds currently in effect.
3. Exception Where Databases Contain Sufficient Information. A
Reporting New Zealand Financial Institution is not required to perform the
paper record search described in subparagraph D(2) of this section if the
Reporting New Zealand Financial Institution’s electronically searchable
information includes the following:
a) The Account Holder’s nationality or residence status;
b) The Account Holder’s residence address and mailing address
currently on file with the Reporting New Zealand Financial
Institution;
c) The Account Holder’s telephone number(s) currently on file, if any,
with the Reporting New Zealand Financial Institution;
d) Whether there are standing instructions to transfer funds in the
account to another account (including an account at another branch
of the Reporting New Zealand Financial Institution or another
Financial Institution);
e) Whether there is a current “in-care-of” address or “hold mail”
address for the Account Holder; and
f) Whether there is any power of attorney or signatory authority for
the account.
4. Relationship Manager Inquiry for Actual Knowledge. In addition to
the electronic and paper record searches described above, the Reporting
New Zealand Financial Institution must treat as a U.S. Reportable Account
any High Value Account assigned to a relationship manager (including any
Financial Accounts aggregated with such High Value Account) if the
relationship manager has actual knowledge that the Account Holder is a
Specified U.S. Person.
5. Effect of Finding U.S. Indicia.
a) If none of the U.S. indicia listed in subparagraph B(1) of this
section are discovered in the enhanced review of High Value
Accounts described above, and the account is not identified as held
by a Specified U.S. Person in subparagraph D(4) of this section,
then no further action is required until there is a change in
circumstances that results in one or more U.S. indicia being
associated with the account.
b) If any of the U.S. indicia listed in subparagraph B(1) of this section
are discovered in the enhanced review of High Value Accounts
described above, or if there is a subsequent change in
circumstances that results in one or more U.S. indicia being
associated with the account, then the Reporting New Zealand
Financial Institution must treat the account as a U.S. Reportable
Account unless it elects to apply subparagraph B(4) of this section
and one of the exceptions in such subparagraph applies with respect
to that account.
c) Except for Depository Accounts described in subparagraph A(4) of
this section, any Preexisting Individual Account that has been
identified as a U.S. Reportable Account under this section shall be
treated as a U.S. Reportable Account in all subsequent years, unless
the Account Holder ceases to be a Specified U.S. Person.
E. Additional Procedures Applicable to High Value Accounts
.
1. If a Preexisting Individual Account is a High Value Account as of June 30,
2014, the Reporting New Zealand Financial Institution must complete the
enhanced review procedures described in paragraph D of this section with
respect to such account by June 30, 2015. If based on this review such
account is identified as a U.S. Reportable Account on or before December
31, 2014, the Reporting New Zealand Financial Institution must report the
required information about such account with respect to 2014 in the first
report on the account and on an annual basis thereafter. In the case of an
account identified as a U.S. Reportable Account after December 31, 2014
and on or before June 30, 2015, the Reporting New Zealand Financial
Institution is not required to report information about such account with
respect to 2014, but must report information about the account on an
annual basis thereafter.
2. If a Preexisting Individual Account is not a High Value Account as of June
30, 2014, but becomes a High Value Account as of the last day of 2015 or
any subsequent calendar year, the Reporting New Zealand Financial
Institution must complete the enhanced review procedures described in
paragraph D of this section with respect to such account within six months
after the last day of the calendar year in which the account becomes a High
Value Account. If based on this review such account is identified as a U.S.
Reportable Account, the Reporting New Zealand Financial Institution must
report the required information about such account with respect to the year
in which it is identified as a U.S. Reportable Account and subsequent years
on an annual basis, unless the Account Holder ceases to be a Specified
U.S. Person.
3. Once a Reporting New Zealand Financial Institution applies the enhanced
review procedures described in paragraph D of this section to a High Value
Account, the Reporting New Zealand Financial Institution is not required
to re-apply such procedures, other than the relationship manager inquiry
described in subparagraph D(4) of this section, to the same High Value
Account in any subsequent year.
4. If there is a change of circumstances with respect to a High Value Account
that results in one or more U.S. indicia described in subparagraph B(1) of
this section being associated with the account, then the Reporting New
Zealand Financial Institution must treat the account as a U.S. Reportable
Account unless it elects to apply subparagraph B(4) of this section and one
of the exceptions in such subparagraph applies with respect to that
account.
5. A Reporting New Zealand Financial Institution must implement
procedures to ensure that a relationship manager identifies any change in
circumstances of an account. For example, if a relationship manager is
notified that the Account Holder has a new mailing address in the United
States, the Reporting New Zealand Financial Institution is required to treat
the new address as a change in circumstances and, if it elects to apply
subparagraph B(4) of this section, is required to obtain the appropriate
documentation from the Account Holder.
F. Preexisting Individual Accounts That Have Been Documented for
Certain Other Purposes. A Reporting New Zealand Financial Institution that
has previously obtained documentation from an Account Holder to establish the
Account Holder’s status as neither a U.S. citizen nor a U.S. resident in order to
meet its obligations under a qualified intermediary, withholding foreign
partnership, or withholding foreign trust agreement with the IRS, or to fulfill its
obligations under chapter 61 of Title 26 of the United States Code, is not required
to perform the procedures described in subparagraph B(1) of this section with
respect to Lower Value Accounts or subparagraphs D(1) through D(3) of this
section with respect to High Value Accounts.
III. New Individual Accounts. The following rules and procedures apply for purposes of
identifying U.S. Reportable Accounts among Financial Accounts held by individuals and opened
on or after July 1, 2014 (“New Individual Accounts”).
A. Accounts Not Required to Be Reviewed, Identified, or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either
with respect to all New Individual Accounts or, separately, with respect to any
clearly identified group of such accounts, where the implementing rules in New
Zealand provide for such an election, the following New Individual Accounts are
not required to be reviewed, identified, or reported as U.S. Reportable Accounts:
1. A Depository Account unless the account balance exceeds $50,000 at the
end of any calendar year or other appropriate reporting period.
2. A Cash Value Insurance Contract unless the Cash Value exceeds $50,000 at
the end of any calendar year or other appropriate reporting period.
B. Other New Individual Accounts. With respect to New Individual
Accounts not described in paragraph A of this section, upon account opening (or
within 90 days after the end of the calendar year in which the account ceases to be
described in paragraph A of this section), the Reporting New Zealand Financial
Institution must obtain a self-certification, which may be part of the account
opening documentation, that allows the Reporting New Zealand Financial
Institution to determine whether the Account Holder is resident in the United
States for tax purposes (for this purpose, a U.S. citizen is considered to be resident
in the United States for tax purposes, even if the Account Holder is also a tax
resident of another jurisdiction) and confirm the reasonableness of such self-
certification based on the information obtained by the Reporting New Zealand
Financial Institution in connection with the opening of the account, including any
documentation collected pursuant to AML/KYC Procedures.
1. If the self-certification establishes that the Account Holder is resident in
the United States for tax purposes, the Reporting New Zealand Financial
Institution must treat the account as a U.S. Reportable Account and obtain
a self-certification that includes the Account Holder’s U.S. TIN (which
may be an IRS Form W-9 or other similar agreed form).
2. If there is a change of circumstances with respect to a New Individual
Account that causes the Reporting New Zealand Financial Institution to
know, or have reason to know, that the original self-certification is
incorrect or unreliable, the Reporting New Zealand Financial Institution
cannot rely on the original self-certification and must obtain a valid self-
certification that establishes whether the Account Holder is a U.S. citizen
or resident for U.S. tax purposes. If the Reporting New Zealand Financial
Institution is unable to obtain a valid self-certification, the Reporting New
Zealand Financial Institution must treat the account as a U.S. Reportable
Account.
IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes of
identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial
Institutions among Preexisting Accounts held by Entities (“Preexisting Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either
with respect to all Preexisting Entity Accounts or, separately, with respect to any
clearly identified group of such accounts, where the implementing rules in New
Zealand provide for such an election, a Preexisting Entity Account with an
account balance or value that does not exceed $250,000 as of June 30, 2014, is not
required to be reviewed, identified, or reported as a U.S. Reportable Account until
the account balance or value exceeds $1,000,000.
B. Entity Accounts Subject to Review. A Preexisting Entity Account that
has an account balance or value that exceeds $250,000 as of June 30, 2014, and a
Preexisting Entity Account that does not exceed $250,000 as of June 30, 2014 but
the account balance or value of which exceeds $1,000,000 as of the last day of
2015 or any subsequent calendar year, must be reviewed in accordance with the
procedures set forth in paragraph D of this section.
C. Entity Accounts With Respect to Which Reporting Is Required. With
respect to Preexisting Entity Accounts described in paragraph B of this section,
only accounts that are held by one or more Entities that are Specified U.S.
Persons, or by Passive NFFEs with one or more Controlling Persons who are U.S.
citizens or residents shall be treated as U.S. Reportable Accounts. In addition,
accounts held by Nonparticipating Financial Institutions shall be treated as
accounts for which aggregate payments as described in subparagraph 1(b) of
Article 4 of the Agreement are reported to the New Zealand Competent Authority.
D.
Review Procedures for Identifying Entity Accounts With Respect to
Which Reporting Is Required. For Preexisting Entity Accounts described in
paragraph B of this section, the Reporting New Zealand Financial Institution must
apply the following review procedures to determine whether the account is held
by one or more Specified U.S. Persons, by Passive NFFEs with one or more
Controlling Persons who are U.S. citizens or residents, or by Nonparticipating
Financial Institutions:
1. Determine Whether the Entity Is a Specified U.S. Person.
a) Review information maintained for regulatory or customer
relationship purposes (including information collected pursuant to
AML/KYC Procedures) to determine whether the information
indicates that the Account Holder is a U.S. Person. For this
purpose, information indicating that the Account Holder is a U.S.
Person includes a U.S. place of incorporation or organization, or a
U.S. address.
b) If the information indicates that the Account Holder is a U.S.
Person, the Reporting New Zealand Financial Institution must treat
the account as a U.S. Reportable Account unless it obtains a self-
certification from the Account Holder (which may be on an IRS
Form W-8 or W-9, or a similar agreed form), or reasonably
determines based on information in its possession or that is publicly
available, that the Account Holder is not a Specified U.S. Person.
2. Determine Whether a Non-U.S. Entity Is a Financial Institution.
a) Review information maintained for regulatory or customer
relationship purposes (including information collected pursuant to
AML/KYC Procedures) to determine whether the information
indicates that the Account Holder is a Financial Institution.
b) If the information indicates that the Account Holder is a Financial
Institution, or the Reporting New Zealand Financial Institution
verifies the Account Holder’s Global Intermediary Identification
Number on the published IRS FFI list, then the account is not a
U.S. Reportable Account.
3. Determine Whether a Financial Institution Is a Nonparticipating
Financial Institution Payments to Which Are Subject to Aggregate
Reporting Under Subparagraph 1(b) of Article 4 of the Agreement.
a) Subject to subparagraph D(3)(b) of this section, a Reporting New
Zealand Financial Institution may determine that the Account
Holder is a New Zealand Financial Institution or other Partner
Jurisdiction Financial Institution if the Reporting New Zealand
Financial Institution reasonably determines that the Account Holder
has such status on the basis of the Account Holder’s Global
Intermediary Identification Number on the published IRS FFI list
or other information that is publicly available or in the possession
of the Reporting New Zealand Financial Institution, as applicable.
In such case, no further review, identification, or reporting is
required with respect to the account.
b) If the Account Holder is a New Zealand Financial Institution or
other Partner Jurisdiction Financial Institution treated by the IRS as
a Nonparticipating Financial Institution, then the account is not a
U.S. Reportable Account, but payments to the Account Holder must
be reported as contemplated in subparagraph 1(b) of Article 4 of the
Agreement.
c) If the Account Holder is not a New Zealand Financial Institution or
other Partner Jurisdiction Financial Institution, then the Reporting
New Zealand Financial Institution must treat the Account Holder as
a Nonparticipating Financial Institution payments to which are
reportable under subparagraph 1(b) of Article 4 of the Agreement,
unless the Reporting New Zealand Financial Institution:
(1) Obtains a self-certification (which may be on an IRS Form
W-8 or similar agreed form) from the Account Holder that it
is a certified deemed-compliant FFI, or an exempt
beneficial owner, as those terms are defined in relevant U.S.
Treasury Regulations; or
(2) In the case of a participating FFI or registered deemed-
compliant FFI, verifies the Account Holder’s Global
Intermediary Identification Number on the published IRS
FFI list.
4. Determine Whether an Account Held by an NFFE Is a U.S.
Reportable Account. With respect to an Account Holder of a Preexisting
Entity Account that is not identified as either a U.S. Person or a Financial
Institution, the Reporting New Zealand Financial Institution must identify
(i) whether the Account Holder has Controlling Persons, (ii) whether the
Account Holder is a Passive NFFE, and (iii) whether any of the
Controlling Persons of the Account Holder is a U.S. citizen or resident. In
making these determinations the Reporting New Zealand Financial
Institution must follow the guidance in subparagraphs D(4)(a) through
D(4)(d) of this section in the order most appropriate under the
circumstances.
a) For purposes of determining the Controlling Persons of an Account
Holder, a Reporting New Zealand Financial Institution may rely on
information collected and maintained pursuant to AML/KYC
Procedures.
b) For purposes of determining whether the Account Holder is a
Passive NFFE, the Reporting New Zealand Financial Institution
must obtain a self-certification (which may be on an IRS Form W-8
or W-9, or on a similar agreed form) from the Account Holder to
establish its status, unless it has information in its possession or that
is publicly available, based on which it can reasonably determine
that the Account Holder is an Active NFFE.
c) For purposes of determining whether a Controlling Person of a
Passive NFFE is a U.S. citizen or resident for tax purposes, a
Reporting New Zealand Financial Institution may rely on:
(1) Information collected and maintained pursuant to
AML/KYC Procedures in the case of a Preexisting Entity
Account held by one or more NFFEs with an account
balance or value that does not exceed $1,000,000; or
(2) A self-certification (which may be on an IRS Form W-8 or
W-9, or on a similar agreed form) from the Account Holder
or such Controlling Person in the case of a Preexisting
Entity Account held by one or more NFFEs with an account
balance or value that exceeds $1,000,000.
d) If any Controlling Person of a Passive NFFE is a U.S. citizen or
resident, the account shall be treated as a U.S. Reportable Account.
E. Timing of Review and Additional Procedures Applicable to
Preexisting Entity Accounts.
1. Review of Preexisting Entity Accounts with an account balance or value
that exceeds $250,000 as of June 30, 2014 must be completed by June 30,
2016.
2. Review of Preexisting Entity Accounts with an account balance or value
that does not exceed $250,000 as of June 30, 2014, but exceeds $1,000,000
as of December 31 of 2015 or any subsequent year, must be completed
within six months after the last day of the calendar year in which the
account balance or value exceeds $1,000,000.
3. If there is a change of circumstances with respect to a Preexisting Entity
Account that causes the Reporting New Zealand Financial Institution to
know, or have reason to know, that the self-certification or other
documentation associated with an account is incorrect or unreliable, the
Reporting New Zealand Financial Institution must redetermine the status
of the account in accordance with the procedures set forth in paragraph D
of this section.
V. New Entity Accounts. The following rules and procedures apply for purposes of
identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial
Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014
(“New Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either
with respect to all New Entity Accounts or, separately, with respect to any clearly
identified group of such accounts, where the implementing rules in New Zealand
provide for such election, a credit card account or a revolving credit facility
treated as a New Entity Account is not required to be reviewed, identified, or
reported, provided that the Reporting New Zealand Financial Institution
maintaining such account implements policies and procedures to prevent an
account balance owed to the Account Holder that exceeds $50,000.
B. Other New Entity Accounts. With respect to New Entity Accounts not
described in paragraph A of this section, the Reporting New Zealand Financial
Institution must determine whether the Account Holder is: (i) a Specified U.S.
Person; (ii) a New Zealand Financial Institution or other Partner Jurisdiction
Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an
exempt beneficial owner, as those terms are defined in relevant U.S. Treasury
Regulations; or (iv) an Active NFFE or Passive NFFE.
1. Subject to subparagraph B(2) of this section, a Reporting New Zealand
Financial Institution may determine that the Account Holder is an Active
NFFE, a New Zealand Financial Institution, or other Partner Jurisdiction
Financial Institution if the Reporting New Zealand Financial Institution
reasonably determines that the Account Holder has such status on the basis
of the Account Holder’s Global Intermediary Identification Number or
other information that is publicly available or in the possession of the
Reporting New Zealand Financial Institution, as applicable.
2. If the Account Holder is a New Zealand Financial Institution or other
Partner Jurisdiction Financial Institution treated by the IRS as a
Nonparticipating Financial Institution, then the account is not a U.S.
Reportable Account, but payments to the Account Holder must be reported
as contemplated in subparagraph 1(b) of Article 4 of the Agreement.
3. In all other cases, a Reporting New Zealand Financial Institution must
obtain a self-certification from the Account Holder to establish the
Account Holder’s status. Based on the self-certification, the following
rules apply:
a) If the Account Holder is a Specified U.S. Person, the Reporting
New Zealand Financial Institution must treat the account as a U.S.
Reportable Account.
b) If the Account Holder is a Passive NFFE, the Reporting New
Zealand Financial Institution must identify the Controlling Persons
as determined under AML/KYC Procedures, and must determine
whether any such person is a U.S. citizen or resident on the basis of
a self-certification from the Account Holder or such person. If any
such person is a U.S. citizen or resident, the Reporting New
Zealand Financial Institution must treat the account as a U.S.
Reportable Account.
c) If the Account Holder is: (i) a U.S. Person that is not a Specified
U.S. Person; (ii) subject to subparagraph B(3)(d) of this section, a
New Zealand Financial Institution or other Partner Jurisdiction
Financial Institution; (iii) a participating FFI, a deemed-compliant
FFI, or an exempt beneficial owner, as those terms are defined in
relevant U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a
Passive NFFE none of the Controlling Persons of which is a U.S.
citizen or resident, then the account is not a U.S. Reportable
Account, and no reporting is required with respect to the account.
d) If the Account Holder is a Nonparticipating Financial Institution
(including a New Zealand Financial Institution or other Partner
Jurisdiction Financial Institution treated by the IRS as a
Nonparticipating Financial Institution), then the account is not a
U.S. Reportable Account, but payments to the Account Holder must
be reported as contemplated in subparagraph 1(b) of Article 4 of the
Agreement.
VI. Special Rules and Definitions. The following additional rules and definitions apply in
implementing the due diligence procedures described above:
A. Reliance on Self-Certifications and Documentary Evidence. A
Reporting New Zealand Financial Institution may not rely on a self-certification
or documentary evidence if the Reporting New Zealand Financial Institution
knows or has reason to know that the self-certification or documentary evidence is
incorrect or unreliable.
B. Definitions. The following definitions apply for purposes of this Annex I.
1. AML/KYC Procedures. “AML/KYC Procedures” means the customer
due diligence procedures of a Reporting New Zealand Financial Institution
pursuant to the anti-money laundering or similar requirements of New
Zealand to which such Reporting New Zealand Financial Institution is
subject.
2. NFFE. An “NFFE” means any Non-U.S. Entity that is not an FFI as
defined in relevant U.S. Treasury Regulations or is an Entity described in
subparagraph B(4)(j) of this section, and also includes any Non-U.S.
Entity that is established in New Zealand or another Partner Jurisdiction
and that is not a Financial Institution.
3. Passive NFFE. A “Passive NFFE” means any NFFE that is not (i) an
Active NFFE, or (ii) a withholding foreign partnership or withholding
foreign trust pursuant to relevant U.S. Treasury Regulations.
4. Active NFFE. An “Active NFFE” means any NFFE that meets any of the
following criteria:
a) Less than 50 percent of the NFFE’s gross income for the preceding
calendar year or other appropriate reporting period is passive income
and less than 50 percent of the assets held by the NFFE during the
preceding calendar year or other appropriate reporting period are
assets that produce or are held for the production of passive income;
b) The stock of the NFFE is regularly traded on an established securities
market or the NFFE is a Related Entity of an Entity the stock of which
is regularly traded on an established securities market;
c) The NFFE is organized in a U.S. Territory and all of the owners of the
payee are bona fide residents of that U.S. Territory;
d) The NFFE is a government (other than the U.S. Government), a
political subdivision of such government (which, for the avoidance of
doubt, includes a state, province, county, region or municipality), or a
public body performing a function of such government or a political
subdivision thereof, a government of a U.S. Territory, an international
organization, a non-U.S. central bank of issue, or an Entity wholly
owned by one or more of the foregoing;
e) Substantially all of the activities of the NFFE consist of holding (in
whole or in part) the outstanding stock of, or providing financing and
services to, one or more subsidiaries that engage in trades or
businesses other than the business of a Financial Institution, except
that an NFFE shall not qualify for this status if the NFFE functions (or
holds itself out) as an investment fund, such as a private equity fund,
venture capital fund, leveraged buyout fund, or any investment vehicle
whose purpose is to acquire or fund companies and then hold interests
in those companies as capital assets for investment purposes;
f) The NFFE is not yet operating a business and has no prior operating
history, but is investing capital into assets with the intent to operate a
business other than that of a Financial Institution, provided that the
NFFE shall not qualify for this exception after the date that is 24
months after the date of the initial organization of the NFFE;
g) The NFFE was not a Financial Institution in the past five years, and is
in the process of liquidating its assets or is reorganizing with the intent
to continue or recommence operations in a business other than that of a
Financial Institution;
h) The NFFE primarily engages in financing and hedging transactions
with or for Related Entities that are not Financial Institutions, and does
not provide financing or hedging services to any Entity that is not a
Related Entity, provided that the group of any such Related Entities is
primarily engaged in a business other than that of a Financial
Institution;
i) The NFFE is an “excepted NFFE” as described in relevant U.S.
Treasury Regulations; or
j) The NFFE meets all of the following requirements:
i. It is established and operated in its jurisdiction of residence
exclusively for religious, charitable, scientific, artistic, cultural,
athletic, or educational purposes; or it is established and operated
in its jurisdiction of residence and it is a professional
organization, business league, chamber of commerce, labor
organization, agricultural or horticultural organization, civic
league or an organization operated exclusively for the promotion
of social welfare;
ii. It is exempt from income tax in its jurisdiction of residence;
iii. It has no shareholders or members who have a proprietary or
beneficial interest in its income or assets;
iv. The applicable laws of the NFFE’s jurisdiction of residence or
the NFFE’s formation documents do not permit any income or
assets of the NFFE to be distributed to, or applied for the benefit
of, a private person or non-charitable Entity other than pursuant
to the conduct of the NFFE’s charitable activities, or as payment
of reasonable compensation for services rendered, or as payment
representing the fair market value of property which the NFFE
has purchased; and
v. The applicable laws of the NFFE’s jurisdiction of residence or
the NFFE’s formation documents require that, upon the NFFE’s
liquidation or dissolution, all of its assets be distributed to a
governmental entity or other non-profit organization, or escheat
to the government of the NFFE’s jurisdiction of residence or any
political subdivision thereof.
5. Preexisting Account. A “Preexisting Account” means a Financial
Account maintained by a Reporting Financial Institution as of June 30,
2014.
C. Account Balance Aggregation and Currency Translation Rules.
1. Aggregation of Individual Accounts. For purposes of determining the
aggregate balance or value of Financial Accounts held by an individual, a
Reporting New Zealand Financial Institution is required to aggregate all
Financial Accounts maintained by the Reporting New Zealand Financial
Institution, or by a Related Entity, but only to the extent that the Reporting
New Zealand Financial Institution’s computerized systems link the
Financial Accounts by reference to a data element such as client number or
taxpayer identification number, and allow account balances or values to be
aggregated. Each holder of a jointly held Financial Account shall be
attributed the entire balance or value of the jointly held Financial Account
for purposes of applying the aggregation requirements described in this
paragraph 1.
2. Aggregation of Entity Accounts. For purposes of determining the
aggregate balance or value of Financial Accounts held by an Entity, a
Reporting New Zealand Financial Institution is required to take into
account all Financial Accounts that are maintained by the Reporting New
Zealand Financial Institution, or by a Related Entity, but only to the extent
that the Reporting New Zealand Financial Institution’s computerized
systems link the Financial Accounts by reference to a data element such as
client number or taxpayer identification number, and allow account
balances or values to be aggregated.
3. Special Aggregation Rule Applicable to Relationship Managers. For
purposes of determining the aggregate balance or value of Financial
Accounts held by a person to determine whether a Financial Account is a
High Value Account, a Reporting New Zealand Financial Institution is
also required, in the case of any Financial Accounts that a relationship
manager knows, or has reason to know, are directly or indirectly owned,
controlled, or established (other than in a fiduciary capacity) by the same
person, to aggregate all such accounts.
4. Currency Translation Rule. For purposes of determining the balance or
value of Financial Accounts denominated in a currency other than the U.S.
dollar, a Reporting New Zealand Financial Institution must convert the
U.S. dollar threshold amounts described in this Annex I into such currency
using a published spot rate determined as of the last day of the calendar
year preceding the year in which the Reporting New Zealand Financial
Institution is determining the balance or value.
D. Documentary Evidence. For purposes of this Annex I, acceptable
documentary evidence includes any of the following:
1. A certificate of residence issued by an authorized government body (for
example, a government or agency thereof, or a municipality) of the
jurisdiction in which the payee claims to be a resident.
2. With respect to an individual, any valid identification issued by an
authorized government body (for example, a government or agency
thereof, or a municipality), that includes the individual’s name and is
typically used for identification purposes.
3. With respect to an Entity, any official documentation issued by an
authorized government body (for example, a government or agency
thereof, or a municipality) that includes the name of the Entity and either
the address of its principal office in the jurisdiction (or U.S. Territory) in
which it claims to be a resident or the jurisdiction (or U.S. Territory) in
which the Entity was incorporated or organized.
4. With respect to a Financial Account maintained in a jurisdiction with anti-
money laundering rules that have been approved by the IRS in connection
with a QI agreement (as described in relevant U.S. Treasury Regulations),
any of the documents, other than a Form W-8 or W-9, referenced in the
jurisdiction’s attachment to the QI agreement for identifying individuals or
Entities.
5. Any financial statement, third-party credit report, bankruptcy filing, or
U.S. Securities and Exchange Commission report.
E. Alternative Procedures for Financial Accounts Held by Individual
Beneficiaries of a Cash Value Insurance Contract. A Reporting New Zealand
Financial Institution may presume that an individual beneficiary (other than the owner) of
a Cash Value Insurance Contract receiving a death benefit is not a Specified U.S. Person
and may treat such Financial Account as other than a U.S. Reportable Account unless the
Reporting New Zealand Financial Institution has actual knowledge, or reason to know,
that the beneficiary is a Specified U.S. Person. A Reporting New Zealand Financial
Institution has reason to know that a beneficiary of a Cash Value Insurance Contract is a
Specified U.S. Person if the information collected by the Reporting New Zealand
Financial Institution and associated with the beneficiary contains U.S. indicia as
described in subparagraph (B)(1) of section II of this Annex I. If a Reporting New
Zealand Financial Institution has actual knowledge, or reason to know, that the
beneficiary is a Specified U.S. Person, the Reporting New Zealand Financial Institution
must follow the procedures in subparagraph B(3) of section II of this Annex I.
F. Reliance on Third Parties. Regardless of whether an election is made under
paragraph C of section I of this Annex I, New Zealand may permit Reporting New
Zealand Financial Institutions to rely on due diligence procedures performed by third
parties, to the extent provided in relevant U.S. Treasury Regulations.
ANNEX II
NON-REPORTING NEW ZEALAND FINANCIAL INSTITUTIONS AND ACCOUNTS
General
The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFIs,
as the case may be, and the following accounts are excluded from the definition of Financial
Accounts.
I. Exempt Beneficial Owners other than Funds.
The following Entities shall be treated as Non-Reporting New Zealand Financial Institutions and
as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal
Revenue Code, other than with respect to a payment that is derived from an obligation held in
connection with a commercial financial activity of a type engaged in by a Specified Insurance
Company, Custodial Institution, or Depository Institution.
A. Governmental Entities.
The government of New Zealand, any political subdivision of New Zealand (which, for
the avoidance of doubt, includes a state, province, county, region, or municipality), or
any wholly owned agency or instrumentality of New Zealand or any one or more of the
foregoing (each, a “New Zealand Governmental Entity”). This category is comprised of
the integral parts, controlled entities, and political subdivisions of New Zealand.
1. An integral part of New Zealand means any person, organization, agency, bureau,
fund, instrumentality, or other body, however designated, that constitutes a governing
authority of New Zealand. The net earnings of the governing authority must be
credited to its own account or to other accounts of New Zealand, with no portion
inuring to the benefit of any private person. An integral part does not include any
individual who is a sovereign, official, or administrator acting in a private or personal
capacity.
2. A controlled entity means an Entity that is separate in form from New Zealand or
that otherwise constitutes a separate juridical entity, provided that:
a) The Entity is wholly owned and controlled by one or more New Zealand
Governmental Entities directly or through one or more controlled entities;
b) The Entity’s net earnings are credited to its own account or to the accounts of one
or more New Zealand Governmental Entities, with no portion of its income
inuring to the benefit of any private person; and
c) The Entity’s assets vest in one or more New Zealand Governmental Entities upon
dissolution.
3. Income does not inure to the benefit of private persons
if such persons are the
intended beneficiaries of a governmental program, and the program activities are
performed for the general public with respect to the common welfare or relate to the
administration of some phase of government.
Notwithstanding the foregoing,
however, income is considered to inure to the benefit of private persons if the income
is derived from the use of a governmental entity to conduct a commercial business,
such as a commercial banking business, that provides financial services to private
persons.
4. For the avoidance of doubt, the following shall be treated as Non-Reporting New
Zealand Financial Institutions and as exempt beneficial owners for purposes of
sections 1471 and 1472 of the U.S. Internal Revenue Code:
a) The New Zealand Superannuation Fund;
b) The Guardians of New Zealand Superannuation;
c) The Accident Compensation Corporation;
d) The Earthquake Commission;
e) The Māori Trustee;
f) New Zealand Local Government Funding Agency Limited;
g) The Reserve Bank of New Zealand as per section 5, and all branches and agencies
as per section 6, of the Reserve Bank of New Zealand Act 1989.
B. International Organization. Any international organization or wholly owned agency or
instrumentality thereof. This category includes any intergovernmental organization
(including a supranational organization) (1) that is comprised primarily of non-U.S.
governments; (2) that has in effect a headquarters agreement with New Zealand; and (3)
the income of which does not inure to the benefit of private persons.
C. Māori Authorities. Māori Authorities as defined in section HF 1(1) of the Income Tax
Act 2007.
II. Funds that Qualify as Exempt Beneficial Owners.
The following Entities shall be treated as Non-Reporting New Zealand Financial Institutions
and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal
Revenue Code.
A. Treaty-Qualified Retirement Fund. Any pension fund established in New Zealand
and described in Article 3(1)(l) (General Definitions) of the Convention, provided that
the pension fund is entitled to benefits under the Convention on income that it derives
from sources within the United States (or would be entitled to such benefits if it derived
any such income) as a resident of New Zealand that satisfies any applicable limitation on
benefits requirement.
B. Broad Participation Retirement Fund. A fund established in New Zealand to provide
retirement, disability, or death benefits, or any combination thereof, to beneficiaries that
are current or former employees (or persons designated by such employees) of one or
more employers in consideration for services rendered, provided that the fund:
1. Does not have a single beneficiary with a right to more than five percent of the fund’s
assets;
2. Is subject to government regulation and provides annual information reporting about
its beneficiaries to the relevant tax authorities in New Zealand; and
3. Satisfies at least one of the following requirements:
a) The fund is generally exempt from tax in New Zealand on investment income
under the laws of New Zealand due to its status as a retirement or pension plan;
b) The fund receives at least 50 percent of its total contributions (other than transfers
of assets from other plans described in paragraphs A through D of this section or
from retirement and pension accounts described in subparagraph B(1) of section
V of this Annex II) from the sponsoring employers;
c) Distributions or withdrawals from the fund are allowed only upon the occurrence
of specified events related to retirement, disability, or death (except rollover
distributions to other retirement funds described in paragraphs A through D of this
section or retirement and pension accounts described in subparagraph B(1) of
section V of this Annex II), or penalties apply to distributions or withdrawals
made before such specified events; or
d) Contributions (other than certain permitted make-up contributions) by employees
to the fund are limited by reference to earned income of the employee or may not
exceed $50,000 annually, applying the rules set forth in Annex I for account
aggregation and currency translation.
C. Narrow Participation Retirement Fund. A fund established in New Zealand to
provide retirement, disability, or death benefits to beneficiaries that are current or former
employees (or persons designated by such employees) of one or more employers in
consideration for services rendered, provided that:
1. The fund has fewer than 50 participants;
2. The fund is sponsored by one or more employers that are not Investment Entities or
Passive NFFEs;
3. The employee and employer contributions to the fund (other than transfers of assets
from treaty-qualified retirement funds described in paragraph A of this section or
retirement and pension accounts described in subparagraph B(1) of section V of this
Annex II) are limited by reference to earned income and compensation of the
employee, respectively;
4. Participants that are not residents of New Zealand are not entitled to more than 20
percent of the fund’s assets; and
5. The fund is subject to government regulation and provides annual information
reporting about its beneficiaries to the relevant tax authorities in New Zealand.
D. Pension Fund of an Exempt Beneficial Owner. A fund established in New Zealand by
an exempt beneficial owner to provide retirement, disability, or death benefits to
beneficiaries or participants that are current or former employees of the exempt beneficial
owner (or persons designated by such employees), or that are not current or former
employees, if the benefits provided to such beneficiaries or participants are in
consideration of personal services performed for the exempt beneficial owner.
E. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that is a
New Zealand Financial Institution solely because it is an Investment Entity, provided that
each direct holder of an Equity Interest in the Entity is an exempt beneficial owner, and
each direct holder of a debt interest in such Entity is either a Depository Institution (with
respect to a loan made to such Entity) or an exempt beneficial owner.
III. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant
FFIs.
The following Financial Institutions are Non-Reporting New Zealand Financial
Institutions that shall be treated as deemed-compliant FFIs for purposes of section 1471
of the U.S. Internal Revenue Code.
A. Financial Institutions with a Local Client Base.
A New Zealand Financial Institution satisfying the following requirements:
1. The Financial Institution must be licensed or regulated as a financial institution under
the laws of New Zealand;
2. The Financial Institution must have no fixed place of business outside of New
Zealand. For this purpose, a fixed place of business does not include a location that is
not advertised to the public and from which the Financial Institution performs solely
administrative support functions;
3. The Financial Institution must not solicit customers or Account Holders outside of
New Zealand. For this purpose, a Financial Institution shall not be considered to have
solicited customers or Account Holders outside of New Zealand merely because the
Financial Institution (a) operates a website, provided that the website does not
specifically indicate that the Financial Institution provides Financial Accounts or
services to non-residents, and does not otherwise target or solicit U.S. customers or
Account Holders, or (b) advertises in print media or on a radio or television station
that is distributed or aired primarily within New Zealand but is also incidentally
distributed or aired in other countries, provided that the advertisement does not
specifically indicate that the Financial Institution provides Financial Accounts or
services to non-residents, and does not otherwise target or solicit U.S. customers or
Account Holders;
4. The Financial Institution must be required under the laws of New Zealand to identify
resident Account Holders for the purposes of either information reporting or
withholding of tax with respect to Financial Accounts held by residents or for the
purposes of satisfying New Zealand’s anti-money laundering due diligence
requirements;
5. At least 98 percent of the Financial Accounts by value maintained by the Financial
Institution, as of the last day of the preceding calendar year or other appropriate
reporting period, must be held by residents (including residents that are Entities) of
New Zealand or Australia;
6. Beginning on or before July 1, 2014, the Financial Institution must have policies and
procedures, consistent with those set forth in Annex I, to prevent the Financial
Institution from providing a Financial Account to any Nonparticipating Financial
Institution and to monitor whether the Financial Institution opens or maintains a
Financial Account for
(i) any Specified U.S. Person who is not a resident of New Zealand (including a U.S.
Person that was a resident of New Zealand when the account was opened but
subsequently ceases to be a resident of New Zealand), or
(ii) any Passive NFFE with one or more Controlling Persons who are U.S. residents
or U.S. citizens who are not residents of New Zealand;
7. Such policies and procedures must provide that if any Financial Account held by a
Specified U.S. Person who is not a resident of New Zealand or by a Passive NFFE
with Controlling Persons who are U.S. residents or U.S. citizens who are not residents
of New Zealand is identified, the Financial Institution must report such Financial
Account as would be required if the Financial Institution were a Reporting New
Zealand Financial Institution (including by following the applicable registration
requirements on the IRS FATCA registration website) or close such Financial
Account;
8. With respect to a Preexisting Account held by an individual who is not a resident of
New Zealand or by an Entity, the Financial Institution must review those Preexisting
Accounts in accordance with the procedures set forth in Annex I applicable to
Preexisting Accounts to identify any U.S. Reportable Account or Financial Account
held by a Nonparticipating Financial Institution, and must report such Financial
Account as would be required if the Financial Institution were a Reporting New
Zealand Financial Institution (including by following the applicable registration
requirements on the IRS FATCA registration website) or close such Financial
Account;
9. Each Related Entity of the Financial Institution that is a Financial Institution must be
incorporated or organized in New Zealand and, with the exception of any Related
Entity that is a retirement fund described in paragraphs A through D of section II of
this Annex II, satisfy the requirements set forth in this paragraph A; and
10. The Financial Institution must not have policies or practices that discriminate against
opening or maintaining Financial Accounts for individuals who are Specified U.S.
Persons and residents of New Zealand.
B. Certain Non-Registering Local Banks.
A New Zealand Financial Institution satisfying the following requirements:
1. The Financial Institution operates solely as (and is licensed or regulated under the
laws of New Zealand as) (a) a bank (or a Financial Institution offering comparable
financial services) or (b) a credit union or similar cooperative credit organization that
is operated without profit;
2. The Financial Institution’s business consists primarily of receiving deposits from and
making loans to, with respect to a bank, unrelated retail customers and, with respect
to a credit union or similar cooperative credit organization, members, provided that
no member has a greater than five percent interest in such credit union or cooperative
credit organization;
3. The Financial Institution satisfies the requirements set forth in subparagraphs A(2)
and A(3) of this section provided that, in addition to the limitations on the website
described in subparagraph A(3) of this section, the website does not permit the
opening of a Financial Account;
4. The Financial Institution does not have more than $175 million (as of the last day of
the preceding calendar year or other appropriate reporting period) in assets on its
balance sheet, and the Financial Institution and any Related Entities, taken together,
do not have more than $500 million (as of the last day of the preceding calendar year
or other appropriate reporting period) in total assets on their consolidated or
combined balance sheets; and
5. Any Related Entity must be incorporated or organized in New Zealand, and any
Related Entity that is a Financial Institution, with the exception of any Related Entity
that is a retirement fund described in paragraphs A through D of section II of this
Annex II or a Financial Institution with only low-value accounts described in
paragraph C of this section, must satisfy the requirements set forth in this paragraph
B.
C. Financial Institution with Only Low-Value Accounts. A New Zealand Financial
Institution satisfying the following requirements:
1. The Financial Institution is not an Investment Entity;
2. No Financial Account maintained by the Financial Institution or any Related Entity
has a balance or value in excess of $50,000, applying the rules set forth in Annex I
for account aggregation and currency translation; and
3. The Financial Institution does not have more than $50 million in assets on its
balance sheet, and the Financial Institution and any Related Entities, taken together,
do not have more than $50 million in total assets on their consolidated or combined
balance sheets.
D. Qualified Credit Card Issuer. A New Zealand Financial Institution satisfying the
following requirements:
1. The Financial Institution is a Financial Institution solely because it is an issuer of
credit cards that accepts deposits only when a customer makes a payment in excess of
a balance due with respect to the card and the overpayment is not immediately
returned to the customer; and
2. Beginning on or before July 1, 2014, the Financial Institution implements policies and
procedures to either prevent a customer deposit in excess of $50,000, or to ensure that
any customer deposit in excess of $50,000, in each case applying the rules set forth in
Annex I for account aggregation and currency translation, is refunded to the
customer within 60 days. For this purpose, a customer deposit does not refer to credit
balances to the extent of disputed charges but does include credit balances resulting
from merchandise returns.
IV.
Investment Entities that Qualify as Deemed-Compliant FFIs and Other Special
Rules.
The Financial Institutions described in paragraphs A through E of this section are Non-
Reporting New Zealand Financial Institutions that shall be treated as deemed-compliant
FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. In addition,
paragraph F of this section provides special rules applicable to an Investment Entity.
A. Trustee-Documented Trust. A trust established under the laws of New Zealand to the
extent that the trustee of the trust is a Reporting U.S. Financial Institution, Reporting
Model 1 FFI, or Participating FFI and reports all information required to be reported
pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust.
B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial
Institution described in subparagraph B(1) or B(2) of this section having a sponsoring
entity that complies with the requirements of subparagraph B(3) of this section.
1. A Financial Institution is a sponsored investment entity if (a) it is an Investment
Entity established in New Zealand that is not a qualified intermediary, withholding
foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury
Regulations; and (b) an Entity has agreed with the Financial Institution to act as a
sponsoring entity for the Financial Institution.
2. A Financial Institution is a sponsored controlled foreign corporation if (a) the
Financial Institution is a controlled foreign corporation
1
organized under the laws of
New Zealand that is not a qualified intermediary, withholding foreign partnership, or
withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the
Financial Institution is wholly owned, directly or indirectly, by a Reporting U.S.
Financial Institution that agrees to act, or requires an affiliate of the Financial
Institution to act, as a sponsoring entity for the Financial Institution; and (c) the
Financial Institution shares a common electronic account system with the sponsoring
entity that enables the sponsoring entity to identify all Account Holders and payees of
the Financial Institution and to access all account and customer information
maintained by the Financial Institution including, but not limited to, customer
identification information, customer documentation, account balance, and all
payments made to the Account Holder or payee.
3. The sponsoring entity complies with the following requirements:
a) The sponsoring entity is authorized to act on behalf of the Financial Institution
(such as a fund manager, trustee, corporate director, or managing partner) to
fulfill applicable registration requirements on the IRS FATCA registration
website;
1
A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined
voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such
corporation, is owned, or is considered as owned, by “United States shareholders” on any day during the taxable
year of such foreign corporation. The term a “United States shareholder” means, with respect to any foreign
corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total
combined voting power of all classes of stock entitled to vote of such foreign corporation.
b) The sponsoring entity has registered as a sponsoring entity with the IRS on the
IRS FATCA registration website;
c) If the sponsoring entity identifies any U.S. Reportable Accounts with respect to
the Financial Institution, the sponsoring entity registers the Financial Institution
pursuant to applicable registration requirements on the IRS FATCA registration
website on or before the later of December 31, 2015 and the date that is 90 days
after such a U.S. Reportable Account is first identified;
d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all
due diligence, withholding, reporting, and other requirements that the Financial
Institution would have been required to perform if it were a Reporting New
Zealand Financial Institution;
e) The sponsoring entity identifies the Financial Institution and includes the
identifying number of the Financial Institution (obtained by following applicable
registration requirements on the IRS FATCA registration website) in all reporting
completed on the Financial Institution’s behalf; and
f) The sponsoring entity has not had its status as a sponsor revoked.
C. Sponsored, Closely Held Investment Vehicle. A New Zealand Financial Institution
satisfying the following requirements:
1. The Financial Institution is a Financial Institution solely because it is an Investment
Entity and is not a qualified intermediary, withholding foreign partnership, or
withholding foreign trust pursuant to relevant U.S. Treasury Regulations;
2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1
FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution
(such as a professional manager, trustee, or managing partner), and agrees to perform,
on behalf of the Financial Institution, all due diligence, withholding, reporting, and
other requirements that the Financial Institution would have been required to perform
if it were a Reporting New Zealand Financial Institution;
3. The Financial Institution does not hold itself out as an investment vehicle for
unrelated parties;
4. Twenty or fewer individuals own all of the debt interests and Equity Interests in the
Financial Institution (disregarding debt interests owned by Participating FFIs and
deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns
100 percent of the Equity Interests in the Financial Institution and is itself a sponsored
Financial Institution described in this paragraph C); and
5. The sponsoring entity complies with the following requirements:
a) The sponsoring entity has registered as a sponsoring entity pursuant to applicable
registration requirements on the IRS FATCA registration website;
b) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all
due diligence, withholding, reporting, and other requirements that the Financial
Institution would have been required to perform if it were a Reporting New
Zealand Financial Institution and retains documentation collected with respect to
the Financial Institution for a period of six years;
c) The sponsoring entity identifies the Financial Institution in all reporting
completed on the Financial Institution’s behalf; and
d) The sponsoring entity has not had its status as a sponsor revoked.
D. Investment Advisors and Investment Managers. An Investment Entity established in
New Zealand that is a Financial Institution solely because it (1) renders investment
advice to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a
customer for the purposes of investing, managing, or administering funds deposited in the
name of the customer with a Financial Institution other than a Nonparticipating Financial
Institution.
E. Collective Investment Vehicle. An Investment Entity established in New Zealand that is
regulated as a collective investment vehicle, provided that all of the interests in the
collective investment vehicle (including debt interests in excess of $50,000) are held by or
through one or more exempt beneficial owners, Active NFFEs described in subparagraph
B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, or
Financial Institutions that are not Nonparticipating Financial Institutions.
F. Special Rules. The following rules apply to an Investment Entity:
1. With respect to interests in an Investment Entity that is a collective investment
vehicle described in paragraph E of this section, the reporting obligations of any
Investment Entity (other than a Financial Institution through which interests in the
collective investment vehicle are held) shall be deemed fulfilled.
2. With respect to interests in:
a) An Investment Entity established in a Partner Jurisdiction that is regulated as a
collective investment vehicle, all of the interests in which (including debt interests
in excess of $50,000) are held by or through one or more exempt beneficial
owners, Active NFFEs described in subparagraph B(4) of section F of Annex I,
U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are
not Nonparticipating Financial Institutions; or
b) An Investment Entity that is a qualified collective investment vehicle under
relevant U.S. Treasury Regulations;
the reporting obligations of any Investment Entity that is a New Zealand Financial
Institution (other than a Financial Institution through which interests in the
collective investment vehicle are held) shall be deemed fulfilled.
3. With respect to interests in an Investment Entity established in New Zealand that is
not described in paragraph E or subparagraph F(2) of this section, consistent with
paragraph 3 of Article 5 of the Agreement, the reporting obligations of all other
Investment Entities with respect to such interests shall be deemed fulfilled if the
information required to be reported by the first-mentioned Investment Entity pursuant
to the Agreement with respect to such interests is reported by such Investment Entity
or another person.
V. Accounts Excluded from Financial Accounts.
The following accounts are excluded from the definition of Financial Accounts and
therefore shall not be treated as U.S. Reportable Accounts.
A. Certain Retirement Accounts or Products.
Membership of the Whai Rawa approved retirement savings scheme operated by Te
Rūnanga o Ngāi Tahu.
B. Certain Savings Accounts.
1. Retirement and Pension Account
. A retirement or pension account maintained in
New Zealand that satisfies the following requirements under the laws of New
Zealand.
a) The account is subject to regulation as a personal retirement account or is part of a
registered or regulated retirement or pension plan for the provision of retirement
or pension benefits (including disability or death benefits);
b) The account is tax-favored (i.e., contributions to the account that would otherwise
be subject to tax under the laws of New Zealand are deductible or excluded from
the gross income of the account holder or taxed at a reduced rate, or taxation of
investment income from the account is deferred or taxed at a reduced rate);
c) Annual information reporting is required to the tax authorities in New Zealand
with respect to the account;
d) Withdrawals are conditioned on reaching a specified retirement age, disability, or
death, or penalties apply to withdrawals made before such specified events; and
e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a
maximum lifetime contribution limit to the account of $1,000,000 or less, in each
case applying the rules set forth in Annex I for account aggregation and currency
translation.
2. Non-Retirement Savings Accounts. An account maintained in New Zealand (other
than an insurance or Annuity Contract) that satisfies the following requirements under
the laws of New Zealand.
a) The account is subject to regulation as a savings vehicle for purposes other than
for retirement;
b) The account is tax-favored (i.e., contributions to the account that would otherwise
be subject to tax under the laws of New Zealand are deductible or excluded from
the gross income of the account holder or taxed at a reduced rate, or taxation of
investment income from the account is deferred or taxed at a reduced rate);
c) Withdrawals are conditioned on meeting specific criteria related to the purpose of
the savings account (for example, the provision of educational or medical
benefits), or penalties apply to withdrawals made before such criteria are met; and
d) Annual contributions are limited to $50,000 or less, applying the rules set forth in
Annex I for account aggregation and currency translation.
C. Certain Term Life Insurance Contracts. A life insurance contract maintained in New
Zealand with a coverage period that will end before the insured individual attains age 90,
provided that the contract satisfies the following requirements:
1. Periodic premiums, which do not decrease over time, are payable at least annually
during the period the contract is in existence or until the insured attains age 90,
whichever is shorter;
2. The contract has no contract value that any person can access (by withdrawal, loan, or
otherwise) without terminating the contract;
3. The amount (other than a death benefit) payable upon cancellation or termination of
the contract cannot exceed the aggregate premiums paid for the contract, less the sum
of mortality, morbidity, and expense charges (whether or not actually imposed) for
the period or periods of the contract’s existence and any amounts paid prior to the
cancellation or termination of the contract; and
4. The contract is not held by a transferee for value.
D. Account Held By an Estate
. An account maintained in New Zealand that is held solely
by an estate if the documentation for such account includes a copy of the deceased’s will
or death certificate.
E. Escrow Accounts. An account maintained in New Zealand established in connection
with any of the following:
1. Legislation, a court order or judgment.
2. A sale, exchange, or lease of real or personal property, provided that the account
satisfies the following requirements:
a) The account is funded solely with a down payment, earnest money, deposit in an
amount appropriate to secure an obligation directly related to the transaction, or a
similar payment, or is funded with a financial asset that is deposited in the
account in connection with the sale, exchange, or lease of the property;
b) The account is established and used solely to secure the obligation of the
purchaser to pay the purchase price for the property, the seller to pay any
contingent liability, or the lessor or lessee to pay for any damages relating to the
leased property as agreed under the lease;
c) The assets of the account, including the income earned thereon, will be paid or
otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee
(including to satisfy such person’s obligation) when the property is sold,
exchanged, or surrendered, or the lease terminates;
d) The account is not a margin or similar account established in connection with a
sale or exchange of a financial asset; and
e) The account is not associated with a credit card account.
3. An obligation of a Financial Institution servicing a loan secured by real property to
set aside a portion of a payment solely to facilitate the payment of taxes or insurance
related to the real property at a later time.
4. An obligation of a Financial Institution solely to facilitate the payment of taxes at a
later time.
F. Partner Jurisdiction Accounts. An account maintained in New Zealand and excluded
from the definition of Financial Account under an agreement between the United States
and another Partner Jurisdiction to facilitate the implementation of FATCA, provided that
such account is subject to the same requirements and oversight under the laws of such
other Partner Jurisdiction as if such account were established in that Partner Jurisdiction
and maintained by a Partner Jurisdiction Financial Institution in that Partner Jurisdiction.
G. Certain Other Accounts or Products. An interest in a trust established in accordance
with section 15S(1)(c) of the Tax Administration Act 1994 by a tax pooling intermediary
for the purposes of administering a “tax pooling account” as defined in section RP 17B of
the Income Tax Act 2007.
VI. Definitions. The following additional definitions shall apply to the descriptions above:
A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial Institution
with respect to which a non-U.S. government or agency thereof agrees to obtain and
exchange information pursuant to a Model 1 IGA, other than a Financial Institution
treated as a Nonparticipating Financial Institution under the Model 1 IGA. For purposes
of this definition, the term Model 1 IGA means an arrangement between the United
States or the Treasury Department and a non-U.S. government or one or more agencies
thereof to implement FATCA through reporting by Financial Institutions to such non-
U.S. government or agency thereof, followed by automatic exchange of such reported
information with the IRS.
B. Participating FFI. The term Participating FFI means a Financial Institution that has
agreed to comply with the requirements of an FFI Agreement, including a Financial
Institution described in a Model 2 IGA that has agreed to comply with the requirements
of an FFI Agreement. The term Participating FFI also includes a qualified intermediary
branch of a Reporting U.S. Financial Institution, unless such branch is a Reporting Model
1 FFI. For purposes of this definition, the term FFI Agreement means an agreement that
sets forth the requirements for a Financial Institution to be treated as complying with the
requirements of section 1471(b) of the U.S. Internal Revenue Code. In addition, for
purposes of this definition, the term Model 2 IGA means an arrangement between the
United States or the Treasury Department and a non-U.S. government or one or more
agencies thereof to facilitate the implementation of FATCA through reporting by
Financial Institutions directly to the IRS in accordance with the requirements of an FFI
Agreement, supplemented by the exchange of information between such non-U.S.
government or agency thereof and the IRS.
