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Implementing Common Reporting Standard (CRS) and changes to Hamilton Hindin Greene's Terms & Conditions

Globalisation has provided opportunities for offshore tax evasion. In response, the OECD has developed the Common Reporting Standard (CRS) for Automatic Exchange of Financial Account Information in Tax Matters (AEOI) to provide a global framework for the exchange of financial account information about persons that invest outside of their jurisdiction of tax residence. In broad terms, the CRS requires that financial institutions carry out due diligence to review their financial accounts to identify accounts held or controlled by foreign tax residents; and collect identity and financial information about such persons. This information is then reported to the local revenue authority for exchange with the jurisdiction of tax residence of the account holder.

The New Zealand Government directly incorporated CRS into New Zealand law. The CRS builds largely off the Foreign Account Taxation Compliance Act (FATCA) that New Zealand has already implemented with the United States. New Zealand has committed to commencing CRS obligations from 1 July 2017.

From that date, Hamilton Hindin Greene (HHG) will have CRS obligations to report information to Inland Revenue about relevant foreign tax residents they identified when reviewing their financial accounts. Persons that hold accounts with HHG, or are connected with such accounts, will have obligations to provide information to assist HHG to carry out its reporting obligations. The IRD then has obligations to exchange financial account information with other jurisdictions for AEOI purposes.

More information can be found in the following links to the IRD website.

Information about reporting requirements, exchange of information between countries, FATCA and foreign trusts - http://www.ird.govt.nz/international/exchange/Targeted public awareness campaign, including explanatory video - www.ird.govt.nz/infoshare

AEOI fact sheet: Your obligations if you hold or control financial accounts - http://www.ird.govt.nz/forms-guides/number/forms-1000-1099/ir1033-automatic-exchange-of-information.html

Updating Hamilton Hindin Greene’s (HHG) Terms and Conditions - Amended 23 May 2017 to cover CRS requirements. 

10. Personal Information

10.1(i) use and disclose all information and material required to ensure
Hamilton Hindin Greene and the Custodian is able to comply with the Exchange of Information Requirements, as applicable, including;

a. Self-certification information and any change to such information;

b. Where the Client is a discretionary trust, the trustee(s) of that trust will notify the Client Adviser when a beneficiary of that trust receives
a distribution from the investments held by the Custodian on behalf of the trust; and

c. Where the Client does not adhere to the requirements of (i) a
and b above, the Client Adviser may terminate this agreement upon
reasonable notice.

Exchange of Information Requirements” are the requirements that we must comply with pursuant to the Foreign Account Tax Compliance Act (FATCA), Common Reporting Standard (CRS), any domestic New Zealand legislation or agreements entered into by the New Zealand Government for the purpose of complying with FATCA or CRS, and any equivalent or similar requirements imposed for the purpose of reducing tax evasion by citizens or residents of certain countries.

If you have any questions or concerns regarding the CRS requirements please contact your adviser at Hamilton Hindin Greene Limited.

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