New Zealand: Offshore Compliance Focus Package Released
As I reflect on 2022, one of our significant events in terms of international tax compliance matters was the public release of our Offshore Compliance Focus Package.
We have been participating in automatic exchanges of financial account data with treaty partners for a number of years and actively using the data received in compliance campaigns. We decided it was time to explain in more detail our overall approach to taxing offshore income, emphasising the comprehensive exchange of information programme which enables Inland Revenue to be intelligence-led and customer-centric, as well as sharing learnings from our very successful compliance campaigns. In releasing the package, we wanted to provide customers and tax agents with the information needed to get their international tax affairs right, from the start.
The package has four elements:
Offshore Tax Transparency – this outlines Inland Revenue’s compliance strategy for offshore income and provides greater transparency of the many information-sharing and double tax agreements involving New Zealand, as well as new intelligence tools we use.
Foreign Income Guide for individual New Zealand tax residents – this focuses on common technical issues and contains worked examples to help explain some of the more complex international tax matters.
Transitional Residency Flowchart – this helps customers step through our special rules on transitional residence.
Foreign Income Checklist – this assists tax agents in preparing tax returns for clients with offshore income.
The package can be found on our website as follows: Compliance Focus for Individuals (ird.govt.nz) .
We have been delighted with the positive feedback received from tax agents especially and consider this package a major milestone in our efforts to ensure offshore income is returned correctly in New Zealand.