New Zealand joins FATCA

17.06.2014

New Zealand concluded intergovernmental agreement with USA on joining FATCA.

Now financial institutions of New Zealand will be obliged to submit to IRS Of USA information about American citizens’ accounts. In response IRS will submit to New Zealand information about accounts opened by the citizens of Nex Zealand in USA.

The exchange of information starts on 1^st of July, 2014.

Source: http://www.ird.govt.nz/international/nzwithos/fatca/

Expert’s opinion

It became out of fashion to have American citizenship and green card. The state is watching everyone around the globe with its keen eyes. FATCA leaves no choice for countries and banks, creating a powerful financial currency as the dollar.

Therefore countries sign all agreements with USA and provide information to the tax authorities on all open accounts of American citizens.

But here’s the paradox – a recent study showed that American corporations continue to use offshore zones. In particular, Bermuda and the Cayman Islands play an important role. Moreover, foreign offshore accounts of U.S. corporations are accounted for almost $ 2 trillion.

Irina Lomakina ( Director of Moscow Office of Honest & Bright)