The Foreign Account Tax Compliance Act (FATCA) is United States (US) law aimed at reducing tax evasion by US citizens who have financial accounts outside the United States.
Financial institutions within New Zealand, including Kiwibank, are required to provide relevant information to the Inland Revenue Department (IRD) about customers who may be considered as a ‘US person’ and therefore required to complete a US tax return.
IRD will pass this information on to the US Internal Revenue Service.
Who is affected by FATCA?
FATCA affects ‘US persons’ who have financial accounts outside the United States.
US persons include:
US citizens, including those living outside the United States
US permanent residents, including green card holders
People born outside the United States of a US parent
US tax residents
Certain persons who spend a significant number of days in the United States each year
US corporations, estates and trusts, and other entities controlled by US persons
We will not report the name of any joint account holder who does not meet the criteria of a US person.
How will FATCA impact me as a Kiwibank customer?
If you’re new to Kiwibank we will need to ask you a few additional questions to determine if you may be a US person.
For the majority of customers there won’t be any impact, however if you are a US person you may be contacted to provide further information.
What if I don’t answer?
If you choose not to provide this information, we may have a legal obligation to report your information to IRD.
Will I know if I’m being reported?
Yes. We take our customers’ privacy seriously and we will try to contact you to let you know before we report any information to the IRD.
What information will you report to the IRD?
The only information we will report is:
US tax identification number (or date of birth if no US tax number)
account balances and interest payments.
Appropriate safeguards are in place to ensure that no more information will be reported than is required.