The New Zealand round up has begun. Thought you might be interested in an email that account holders are receiving from ASB bank in New Zealand 🙂
Happy 4th of July…..
Read below the break.
Tag Archives: New Zealand
#FATCA News ‘Breakout’ in New Zealand. Is Stealth coming to an end?
There have been recent spat of news coverage of FATCA in New Zealand media after a long drought!
It is coming on the back of the Select Committee consideration of FATCA IGA implementation legislation buried in a “Remedial Matters” bill. This has been blogged about here with analysis, and here with a plea for comments. The comment submission process closes tonight.
The media coverage started at Wellington Dom Post by Journalist Ben Heather of ben.heather@dompost.co.nz
It was reported on a NewZealand Stuff report, Move to Alter Privacy Laws to help US and has generated 176 comments so far.
There then followed Radio National coverage, a close parallel to CBC News and there are several audio links.
FATCA Top Story on the Radio National website
http://www.radionz.co.nz/news/political/235129/government-has-‘no-choice’-over-privacy-info
It was the first story on 8pm news last night:
http://www.radionz.co.nz/radionz/programmes/news-bulletin/audio/2584610/radio-new-zealand-news
There was a segment on the Afternoon panel:
(Note: Segment starts at 08:10. FCC lawyer from PWC gives the party line. As Osgood says, they still seem to think it is about Americans living here.)
Also there was further discussion with Select Committee members…
Interview with David Parker:
http://www.radionz.co.nz/national/programmes/checkpoint/audio/2584601/labour-wants-us-to-hand-over-nzers%27-tax-details
Another clip with quote from David Clark, also on Select Committee:
Now we wait to see if the NZHerald in Auckland, the nations largest newspaper, picks up the story and expands on it. I have written both the News Desk and the Editor asking for public coverage.
Factors that helped with awareness is the tireless efforts of @Osgood and the support we have received from James Jatras with this posting about the notice being sent to Ambassador Mike Moore about RNC repeal efforts.
New Zealand Ambassador Alerted to Repeal FATCA Movement, Others to Follow
In the RepealFATCA.com posting is included the text of Solomon Yue’s message to Ambassador Moore. Needless to say, he has received several tweets about it from me.
Also, today, just out, is this press release by CF&P
CF&P Urges New Zealand to Reject FATCA Compliance Legislation
(Washington, D.C., Tuesday, February 4, 2014) The Center for Freedom and Prosperity submitted testimony in response to open solicitations from the Parliament of New Zealand regarding tax legislation to implement compliance with the Foreign Account Tax Compliance Act (FATCA). Authored by CF&P Director of Government Affairs, Brian Garst, the testimony warned that appeasement of U.S. demands is the wrong approach, suggesting instead that New Zealand should join in efforts to repeal FATCA.
Link to Testimony: http://freedomandprosperity.org/2014/testimony-and-speeches/testimony-to-parliament-of-new-zealand-on-fatca/
So, it has been a busy time working the FATCA awareness side of the equation and it is gratifying to see all this attention that frankly we have Osgood’s efforts to thank for.
Further contact information:
Osgood just sent these other email address for those who might want to communicate directly to Radio National…
afternoons@radionz.co.nz
morningreport@radionz.co.nz
news@radionz.co.nz (a generic news email address)
James Jatras has written to Ben, the journalist that broke the story originally at the Dom Post and got indications of interest in an interview in the future, which would be good.
A couple observations James made to Ben about the Radio National coverage that bear noting.
Some of the commentary and discussion on RNZ was excellent, while others (with all due respect, especially from Mr. Nightingale from PwC) was inaccurate. Note:
· FATCA does not just apply to “Americans living in New Zealand,” but would violate the personal privacy of an unknown number of New Zealanders in your own country.
· The pending FATCA agreement is not a “treaty” and is not just an extension of existing tax treaties (as Mr. Nightingale stated) but a new set of obligations imposed on NZ with at best questionable legal status, and no legal obligation on the US side.
· FATCA is not just about people who are avoiding taxes, and in fact not a single provision in the FATCA statute targets actual tax evasion activity; rather, it is an NSA-style data dragnet.
· Whatever meagre amount IRD claims enforcement of the pending NZ would cost, it would be far dwarfed by the millions of dollars per financial institution that will be passed on to Kiwi consumers.
· New Zealand would not receive any useful tax information in return from the US.
· The trump argument for agreeing to FATCA – the threat of 30% withholding – has no legitimate basis in international law or norms of state-to-state behavior. It is a threat of extrajudicial reprisal against your citizens, your consumers, and your national sovereignty.
These and other problems with the pending NZ law are addressed in my submission to the relevant NZ parliamentary committee, here.
That’s all for the moment. Now, back to proofing my own submission to the Select Committee and get it up loaded. 13 hours left until the comment ability is removed.
A Plea for Submission against #FATCA IGA Enabling Legislation in New Zealand.
February 3, 2014 UPDATE: Urgent:
Public submissions can be made from anywhere in the world. All that is required is a name, email address and phone number. But you will have to be quick as the link will be closed at midnight on Wed 5th Feb New Zealand time. (That is actually 3 AM the morning of Feb 5th on the West Coast of America.)
I hope you will find time to express your opinion to them. It is very much appreciated. The link is here:
http://www.parliament.nz/en-nz/pb/sc/make-submission/50SCFE_SCF_00DBHOH_BILL12926_1/taxation-annual-rates-employee-allowances-and-remedial (scroll down to “make an online submission”)
Plainly put, FATCA is more Stealth in New Zealand than in America.
Osgood has provided us good informational analysis of the pending Legislation for New Zealand to capitulate without a fight to the FATCA IGA.
This inspired a good article at The New American but nothing in New Zealand media. The last article I have seen is this at Interest.co.nz from November.
The Ministery of Revenue has NO IDEA OF THE COST of what they are doing, or HOW MANY U.S. PERSONs in New Zealand! Nor, do they or the Ministry of Justice seem to care. All they care about is finding a way legislatively to comply. Banks want their bailout, and the government is determined to give it to them, it would seem. Let ALL Kiwi bank customers pay the cost.
Osgood has recently sent an email plea for submissions from over seas, as when it comes to media coverage in New Zealand, FATCA is operating like a Secret CIA covert operation that the citizenry is unaware of.
See below for his request for help. Submissions are easy to do! They are due by February 4th, USA time. Continue reading
New U.S. Tax Regime (#FATCA)Trampling Rights in New Zealand and Beyond
February 3, 2014 UPDATE: Urgent:
Public submissions can be made from anywhere in the world. All that is required is a name, email address and phone number. But you will have to be quick as the link will be closed at midnight on Wed 5th Feb New Zealand time. I hope you will find time to express your opinion to them. The link is here:
http://www.parliament.nz/en-nz/pb/sc/make-submission/50SCFE_SCF_00DBHOH_BILL12926_1/taxation-annual-rates-employee-allowances-and-remedial (scroll down to “make an online submission”)
Osgood’s excellent recent analysis of FATCA IGA ‘enabling’ legislation in New Zealand has inspired another article at The New American.
Under the pretext of extracting more wealth and personal information from Americans living abroad by smashing all remaining vestiges of privacy, the Obama administration’s Treasury Department is bullying authorities around the world into signing unconstitutional pseudo-treaties with drastic implications for individual rights. Developments in New Zealand, where officials are already jumping onboard the deeply controversial U.S. Foreign Account Tax Compliance Act (FATCA) bandwagon, illustrate the problems well.
Alex hits a home run again. I understand that this plus other the articles on FATCA here, here and here will be in their print version too. Every new article helps, so keep chipping away at it Brockers! Reach out to every journalist you can!
Updated Analysis and Comment on New Zealand’s Stealth #FATCA Enabling Legislation
We have been following the New Zealand FATCA IGA developments via several IBS threads. Many of these are listed here for your historical reference.
Much of the information has been provided to us by Kiwi Osgood who comments here on IBS from time to time. We are indebted to him for his dogged pursuit of this issue where FATCA is even less known than it is in America or Canada. Although some Americans must be getting the word, as Phil Hogden reports increased renunciation activity in Auckland.
Osgood has been diligently communicating with the IRD and NZ Revenue Minister, as their ‘FATCA working group’ is doing the negotiation with U.S. Treasury. He has now completed an analysis of the legislation over the Christmas holidays (rotten way to spend a vacation) which will follow after the jump.
In summary he says of the Stealth:
The conclusion is depressing. I think I now see why they are putting the legislation through before the IGA has been signed. The legislation is generic and simply compels NZFIs to comply with “foreign account information sharing agreements”. The contents of those agreements are not considered by the legislation. Essentially the IGAs can be signed by cabinet without further legislation. As the US IGA is still “under negotiation” a casual observer may assume that the contents are still being worked out, but as we know that is not the case. How many people will actually bother to go and look at the Model 1 IGA and look at the detail? It is all quite clever and deceitful.
Read the complete analysis below:
New Zealand IRD Prepares its Tax Agents and Financial Institutions for FATCA Compliance
Without fanfare or public announcements, New Zealand’s Inland Revenue Department (IRD) has published technical guidance notes on it’s web site for NZ Tax Agents. It is found under Tax technical information Te parongo mo te take hangarau
Foreign Account Tax Compliance Act (FATCA)
- What the Foreign Account Tax Compliance Act is and who it applies to
- How the Foreign Account Tax Compliance Act could affect you or your business
- Inland Revenue’s role in the Foreign Account Tax Compliance Act
- Key dates to know about
- Find out more
Under ‘Inland Revenue’s role’, you will see their note about negotiating the FATCA IGA to reduce compliance burden.
Just as the days of New Zealand standing up to America’s Nukes are eroding, it would appear, that it is just a matter of time before Treasury has another IGA notch on their gun. I rarely hear a peep out of U.S. Persons in NZ, and of course, there is no media coverage. The FATCA round up will be like sheep to shearing shed.
Comparing renunciation rates around the world
Curtis Poe, a fellow U.S. Person abroad and occasional Isaac Brock Society commenter, has an interesting post over at his blog Overseas Exile comparing renunciation rates in New Zealand and the United States. He wrote to New Zealand’s Department of Internal Affairs to get their data, and he’s looking for renunciation-of-citizenship data from other countries as well. This was as good a kick-in-the-pants as I’m ever going to get to compile and summarise the data that I’ve been bookmarking over the past few months from various Asian countries, so I’ve written it all up below. I’ve also done a bit of my own back-of-the-envelope analysis: the U.S. renunciation rate may look small, but it’s actually rather high compared to other countries which allow dual citizenship. Since we have commenters from all over the world here, hopefully some of you can help Curtis out with data from your own countries as well.
US taxman's long Arm Threatens Costly Kiwi Headaches
This isn’t much, but it is the first popular media story on FATCA that I have seen in NZ. Unfortunately there doesn’t seem to be any opportunity for Kiwis to provide comment feedback. I have sent an email to the Editor to see if contact with the journalist is possible, and see if additional news reporting is in the offing. They have barely cracked a window open on the story, but as I found out when I did a search for FATCA on the Seattle Times today, there was nothing there either! So maybe I shouldn’t be so hard on my Kiwi friends. They now know more than Seattlites do! Thanks to Moby for drawing my attention to it.
