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Glossary of terms and definitions for IRD numbers

A list of terms and definitions relating to the IRD number application process.

Definitions

Fully functional bank account

A fully functional bank account is one that is held with a New Zealand bank or licensed deposit taker and they have:

  • obtained identity information from you, and
  • completed verification of your identity

in accordance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

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Customer due diligence

Customer due diligence (CDD) is a process that is completed with a New Zealand reporting entity. As part of this process the reporting entity will need to:

  • gather information about a customer's identity, and
  • verify a customer's identity to make sure the customer is who they say they are.

This process aids the detection, management and mitigation of the risk of money laundering and the financing of terrorism.

You must already be, or become, a customer of a New Zealand reporting entity so that CDD can be carried out by them. If you aren't a customer of a New Zealand reporting entity, you can become one by choosing to use the service(s) provided by them.

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New Zealand reporting entity

A New Zealand reporting entity is an organisation that provides financial-related services such as banking, foreign exchange, financial advice and life insurance.

The following websites have details of New Zealand reporting entities:

Note

Please don't call, write or email the DIA, FMA or Reserve Bank regarding New Zealand reporting entities.

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Offshore person

For an individual an offshore person is someone who:

  • is a New Zealand citizen and has been overseas for the last three or more years continuously, or
  • doesn’t have a New Zealand residence class visa granted by Immigration New Zealand, or
  • has a New Zealand residence class visa and has been overseas for the last twelve or more months continuously.

A company is an offshore person if it is:

  • incorporated outside New Zealand, or
  • 25% or more owned or controlled by offshore persons.

A trust is an offshore person if:

  • 25% or more of its governing body are offshore, or
  • offshore person(s) have 25% or more beneficial interest or entitlement to its trust property, or
  • 25% or more of persons with the right to amend or control the trust’s trust deed are offshore persons, or
  • 25% or more of persons with the right to control the composition of the trust’s governing body are offshore persons.

A unit trust is an offshore person if:

  • the manager or trustee (or both) are offshore person(s), or
  • offshore person(s) have beneficial interest or 25% or more of the trust’s property.

A non-individual partnership, unincorporated joint venture, or other unincorporated body is an offshore person if:

  • 25% or more of its partners (or members) are offshore persons, or
  • offshore person(s) have a beneficial interest or entitlement to 25% or more of its profits or assets, or
  • offshore person(s) have the right to exercise (or control the exercise) of 25% or more of voting power at a meeting.

Satisfying Inland Revenue of your identity

If it's not possible to get a New Zealand bank account or customer due diligence, we may still issue an IRD number if you can satisfy the Commissioner of your identity.

The following examples provide general guidelines on how this would happen. There may be situations where we may require more information than is given in these examples or situations that do not match these examples. We will look at these situations individually.

Individual offshore person in New Zealand

If you're an individual offshore person in New Zealand at the time of applying you'll generally still need to provide an active New Zealand bank account or letter from an approved entity stating that customer due diligence has been completed.

We will consider applying discretion in individual cases.

You can "Apply for individual IRD number" in myIR

Individual offshore person not in New Zealand

If you're an individual offshore person not in New Zealand at the time of applying, you'll need to provide:

  • at least 2 forms of certified identification documentation including at least one photo ID such as a passport. Other forms of ID may include a document confirming your Tax Identification Number (TIN) from your country of residence and/or personal identification number from your country of residence
  • certified proof of address, such as a utilty statement.

Note: the same document cannot be used to prove the address if it has already been provided as form of photo identity.

  • proof of your intended activity in New Zealand, eg if it is for buying and/or selling real estate, we need the property purchase agreement or letter from your lawyer or real estate agent confirming activity
  • certified bank account details if you generally reside in a country New Zealand has a double tax agreement (DTA) or Automatic Exchange of Information agreement (AEOI) with.

Documents need to be certified by a person or entity authorised to certify them under the laws of the relevant country of residence. Examples may include a government, judicial or regulatory body, a lawyer, or a notary public. You will also need to provide a certified translation for any documentation that is not in English.

Non-individual offshore person

If you're a non-individual offshore person, you'll need to provide the following information. All documents must be certified

Incorporated entities

Also:

  • Stock exchange listing if listed
  • Names, addresses, TIN numbers of all directors
  • Names, addresses, TIN numbers of all shareholders if the company has 5 or fewer shareholders.

Unincorporated entities

Also:

  • Proof of residential address of an executive office holder, trustee, partner, executor or owner
  • Names, addresses, TIN numbers of executive office holders, trustees, partners, executors or owners

Documents need to be certified by a person or entity authorised to certify them under the laws of the relevant country of residence. Examples may include a government, judicial or regulatory body, a lawyer, or a notary public. You will also need to provide a certified translation for any documentation that is not in English.