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CRS glossary

List of terms used for the Common Reporting Standard and Automatic Exchange of Information
Account holder Automatic Exchange of Information (AEOI)
Controlling person Common Reporting Standard (CRS)
Custodial institution Depository institution
Financial institution Foreign jurisdiction
Global forum Investment entity
New account New Zealand financial institution (NZFI)
Non-reporting New Zealand Financial Institution Participating jurisdictions
Pre-existing account Reportable account
Reportable jurisdiction Reportable person
Reporting New Zealand financial institution (NZFI) Specified insurance company
Wider approach to reporting  

Account holder

The person (individual or entity) listed or identified as holding an account with a financial institution.

There are look-through rules that can apply where a person (other than a financial institution) holds an account for the benefit or account of someone else. The other person is treated as the account holder. Find out more in section 1.8 of the Inland Revenue Guidance on the CRS.

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

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Automatic Exchange of Information (AEOI)

A global standard for the automatic exchange of financial account information in tax matters.

AEOI will be implemented using the OECD's Common Reporting Standard (CRS) which sets out the international rules for collection and reporting of financial account information (identity and financial information) for exchange.

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Controlling person

The controlling person of a passive non-financial entity (NFE) is a natural person(s) who exercises control over that passive NFE. Where no natural person is identified as exercising control, the controlling person of the passive NFE is the natural person(s) who holds the position of senior managing official.

For a passive NFE trust, this means any settlor, trustee, protector, beneficiary or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust. These people must always be treated as controlling persons of a trust, regardless of who exercises actual control over the trust. Find out more in section 1.9 of the Inland Revenue Guidance on the CRS.

Go to the Inland Revenue Guidance on the CRS
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Common Reporting Standard (CRS)

The CRS sets out the OECD's international rules for collection and reporting of financial account information.

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Custodial institution

An entity that holds, as a substantial portion of its business, financial assets for the account of others.

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Depository institution

An entity that accepts deposits in the ordinary course of banking or similar business. Find out more in section 3.1.2 of the Inland Revenue Guidance on the CRS.

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

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Financial institution

A custodial institution, depository institution, investment entity, or specified insurance company. Find out more in section 3.1 of the Inland Revenue Guidance on the CRS.

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

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Foreign jurisdiction

A jurisdiction other than New Zealand.

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Global forum

An international monitoring organisation commissioned by the OECD to conduct peer reviews and generally to evaluate and confirm the level of compliance by each jurisdiction.

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Investment entity

An investment entity would include certain collective investment vehicles, mutual funds, exchange traded funds, private equity funds, hedge funds, venture capital funds, leveraged buy-out funds or any similar investment vehicle established with an investment strategy of investing, reinvesting or trading in financial assets.  This would generally capture unit trusts and managed investment schemes. This list is not exhaustive. 

Entities such as family trusts may be investment entities, particularly if the trust's financial assets are managed by another financial institution. Fund managers, investment managers, and investment advisers will also often be investment entities. Brokers can also sometimes be investment entities. Find out more in sections 3.1.3 & 3.1.4 of the Inland Revenue Guidance on the CRS.

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

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New account

A financial account that is maintained by a Reporting New Zealand financial institution and that is opened on or after 1 July 2017. There is sometimes scope for a Reporting NZFI to treat such accounts opened by an existing customer as being pre-existing accounts.

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New Zealand financial institution (NZFI)

An entity will be an NZFI if either of the following apply :

  • the entity is a financial institution resident in New Zealand for CRS purposes (excluding any branches located outside New Zealand), or
  • the entity is a financial institution not resident in New Zealand, that has a branch located in New Zealand (ie, the New Zealand branch will be an NZFI) .

Find out more in section 3.2 of the Inland Revenue Guidance on the CRS.

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

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Non-reporting New Zealand financial institution

An NZFI excluded from needing to carry out CRS due diligence and reporting. Find out more in section 3.4 of the Inland Revenue Guidance on the CRS.

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

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Participating jurisdictions

An overseas jurisdiction that has an agreement with New Zealand under which they will provide us with CRS information. New Zealand's participating jurisdictions will be identified in a list we publish.

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Pre-existing account

Financial account that is maintained by a Reporting New Zealand financial institution as at 30 June 2017.

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Reportable account

A financial account that is held or (in the case of a passive NFE account holder) controlled by any foreign tax resident that is a reportable person.

This reporting would extend to also cover accounts held or (in the case of passive NFEs) controlled by any relevant foreign tax residents if the reporting New Zealand financial institution chooses to adopt the "wider" approach to CRS reporting.

Reporting NZFIs are also required to report certain accounts referred to in the CRS as "undocumented accounts."

Find out more in sections 5.6.4, 5.6.5, 6 & 7 of the Inland Revenue Guidance on the CRS.

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

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Reportable jurisdiction

An overseas jurisdiction that New Zealand has an agreement to provide CRS information to. The jurisdiction is identified in a list we publish.

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Reportable person

An account holder or (in the case of passive NFEs) controlling person of an account that a Reporting NZFI financial institution (NZFI) has identified as being a foreign tax resident from a Reportable jurisdiction. However, some exclusions apply.

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Reporting New Zealand financial institution (NZFI)

A New Zealand financial institution that must carry out CRS due diligence and report to us on all reportable accounts on an annual basis. This also covers reporting undocumented account information in the circumstances set out in the CRS.

Find out more in section 3 of the Inland Revenue Guidance on the CRS.

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

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Specified insurance company

A specified insurance company for CRS purposes is an insurance company (including its holding company) if it:

  • issues investment products that are classified as cash value insurance contracts or annuity contracts, or
  • makes payments under the terms and conditions of these contracts.

These types of insurance and annuity contracts usually include an investment component. Find out more in section 3.1.4 of the Inland Revenue Guidance on the CRS.

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

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Wider approach to reporting

Reporting NZFIs are able to choose to adopt what is known as the "wider approach" to reporting. This would involve the Reporting NZFI choosing to report all of the accounts that they have identified as being held (and/or, in certain circumstances controlled) by relevant foreign tax residents, irrespective of whether those persons are from jurisdictions (Reportable Jurisdictions) that New Zealand has entered into an AEOI exchange relationship to provide CRS information to. Find out more in sections 1.5& 1.6 of the Inland Revenue Guidance on the CRS.

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