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CRS due diligence and reporting requirements

This page is for New Zealand financial institutions (NZFIs) affected by the Common Reporting Standard (CRS).

CRS due diligence and reporting requirements

From 1 July 2017, Reporting New Zealand Financial Institutions (Reporting NZFIs) must:

  • carry out CRS due diligence:
    • review their financial accounts to identify accounts held and/or, in certain circumstances, controlled (summarised in section 1.9 of the Inland Revenue Guidance on the CRS) by relevant foreign tax residents, and
    • collect prescribed identity and financial account information about these people and accounts
  • report this information annually to Inland Revenue if:
    • the relevant foreign tax resident is from a Reportable Jurisdiction (they are known as Reportable Persons) - we will then exchange this information with that jurisdiction under a tax treaty, or
    • the Reporting NZFI chooses to adopt the wider approach to reporting.
  • report prescribed information annually to Inland Revenue about certain accounts that the CRS refers to as "undocumented accounts".

People and entities holding, and in certain circumstances controlling, financial accounts with Reporting NZFIs have obligations to provide documentation and other information to help these Reporting NZFIs carry out their CRS due diligence and reporting obligations.

An Inland Revenue factsheet is available to support AEOI related customer conversations.

Find out more about your AEOI obligations if you hold or control financial accounts

DIMS providers, Custodians and the CRS (IR1055)

Find more information on the OECD's website

Automatic Exchange Portal

Global Forum on Transparency and Exchange of Information for Tax Purposes

The Common Reporting Standard (CRS)

Standard for Automatic Exchange of Financial Account Information in Tax Matters: Implementation Handbook

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Excluded entities and accounts

The CRS automatically excludes a number of types of entities and accounts as being non-reporting financial institutions and excluded accounts.

The CRS also allows implementing jurisdictions such as New Zealand to expand on the list of automatically excluded non-reporting financial institutions and excluded accounts to also include other "low risk" excluded entities and accounts that meet stringent criteria set out in the CRS. This means these entities and/or accounts would be excluded from due diligence and reporting obligations.

To be considered a "low risk" entity or account, the financial institution must apply to the Commissioner of Inland Revenue for a determination.

Find more information about CRS determinations made by the Commissioner of Inland Revenue

Submissions are welcome from financial institutions that are not otherwise excluded, but that meet these criteria and wish to be included in a list of:

  • excluded non-reporting financial institutions, and/or
  • excluded accounts - for accounts they maintain.

Please send submissions to policy.webmaster@ird.govt.nz

For more information on non-reporting financial institutions and excluded accounts refer Appendices 5 and 6 of the Inland Revenue Guidance on the CRS.

Go to the Inland Revenue Guidance on the CRS
PDF | 1.25mb | 165 pages

Find out more about penalties that may apply

Find out more

If you have questions or would like to join the AEOI industry implementation update please email us at global.aeoi@ird.govt.nz