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Tax Administration Act 1994

Foreign account information-sharing agreements - FATCA agreement

185F: Permitted choices in relation to FATCA agreement

You could also call this:

"Choices you can make under the FATCA agreement with another country"

Illustration for Tax Administration Act 1994

You can make choices under the FATCA agreement. The agreement is between New Zealand and another country. You can choose what to do if the agreement says you can. You are allowed to make a choice if the New Zealand government says you can. The government's choice must be part of the agreement. You can do what the agreement says you can do. The rules in this part of the law are changed to let you make your choice. For example, you might choose which procedure to use. You can use the chosen procedure for due diligence as required by section 185H. The Commissioner must tell people about the government's choices. They will publish a notice about the choices. Your choice and the government's choice are part of the agreement. They are also part of section BH 1 of the Income Tax Act 2007. Some choices are not allowed. These are called excluded choices. They include elections to report on accounts under certain parts of the foreign account information-sharing agreement. The Commissioner will not apply some rules to excluded choices. You cannot make an excluded choice. Excluded choices include elections to report on accounts under certain annexes of the agreement.

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Topics:
Money and consumer rights > Taxes
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185E: Purpose, or

"This part of the law helps New Zealand share financial information with other countries."

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185G: Obligations related to FATCA agreement: registration, or

"Following FATCA registration rules"

Part 11BForeign account information-sharing agreements
FATCA agreement

185FPermitted choices in relation to FATCA agreement

  1. This section applies for a person, as described in the FATCA agreement (the agreement), if—

  2. the agreement describes or contemplates a choice or a course of action or inaction (a permitted choice) in relation to them:
    1. a choice made by the New Zealand government under the agreement allows, as described or contemplated in the agreement, the person a permitted choice.

      1. The person is authorised to make, do, or not do, as described or contemplated by the agreement, the permitted choice, and to do or not do anything necessarily incidental to giving effect to the permitted choice.

      2. The obligations in this Part are modified to the extent necessary to give effect to anything authorised by subsection (2) (for example: a permitted choice, authorised by subsection (2), as to using 1 of 2 due diligence procedures contemplated by the agreement means that the chosen procedure would be part of the required due diligence procedures for the purposes of section 185H).

      3. The Commissioner must publish an appropriate notice of a choice made or revoked by the New Zealand government under the agreement in a publication chosen by the Commissioner.

      4. A person's permitted choice and a choice made by the New Zealand government under the agreement are treated as part of the agreement for the purposes of this Part and section BH 1 of the Income Tax Act 2007.

      5. Subsections (2) to (5) do not apply to a choice or course of action or inaction listed in subsection (7) (an excluded choice).

      6. For the purposes of subsection (6), the following are excluded choices:

      7. an election to report on accounts under Annex 1.II.A of the foreign account information-sharing agreement:
        1. an election to report on accounts under Annex 1.III.A of the foreign account information-sharing agreement:
          1. an election to report on accounts under Annex 1.IV.A of the foreign account information-sharing agreement:
            1. an election to report on accounts under Annex 1.V.A of the foreign account information-sharing agreement.

              Notes
              • Section 185F: inserted, on , by section 182 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
              • Section 185F heading: amended, on , by section 22(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
              • Section 185F(1): amended, on , by section 22(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).