About This Guide

1. The HIRE Act 2010 introduced legislation requiring financial institutions outside of the United States (“U.S.”) to provide details relating to U.S. citizens’ financial accounts to the U.S.’s Internal Revenue Service (“IRS”).
2. The Intergovernmental Agreement (“IGA”) between the U.S. and New Zealand to improve international tax compliance and to implement FATCA was signed on 12 June 2014. Accompanying domestic legislation required to give effect in New Zealand to FATCA received Royal Assent on 30 June 2014 and the IGA and the associated domestic legislation have effect from 1 July 2014. The IGA was brought into effect by Order in Council and came into force on 3 July 2014.

How to Use This Guide

A trust that is a financial institution will, in general terms, only have FATCA due diligence obligations under the IGA if it is a NZFI that is a Reporting NZFI.9
Therefore, this guidance will now briefly outline the circumstances where a financial institution trust will be a NZFI in the first place.
The IGA defines a “New Zealand financial institution” (in this respect) as meaning:
• any financial institution “resident” in New Zealand, excluding any branch of such financial institution located outside New Zealand; and
• any branch of a financial institution not resident in New Zealand, if such branch is located in New Zealand.

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