New Zealand has asked taxpayers for input on countries that lack the safeguards to ensure information automatically exchanged under the Common Reporting Standard (CRS) remains confidential, reports Tax News.
To comply with the new international tax information exchange standard developed by the OECD, the CRS, New Zealand must publish a list of jurisdictions with which Inland Revenue will automatically exchange tax information from July 1.
Inland Revenue is planning to publish its initial list of reportable jurisdictions by the end of May. The Government is interested in public views on any jurisdictions that should not be included on New Zealand's list of reportable jurisdictions.
A consultation on the matter says: "It is crucial that jurisdictions' legal and administrative frameworks meet strict confidentiality and data safeguards before information can be exchanged. The Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) has therefore conducted in-depth reviews into these aspects of jurisdictions implementing AEOI. Some reviews are not yet finalized."
"Once the Global Forum has approved a jurisdiction as having appropriate safeguards in place, the international expectation is that other jurisdictions will treat the approved jurisdictions as reportable. The decision not to include a jurisdiction is not one that the New Zealand Government would take lightly, being mindful of a range of issues, including diplomatic considerations, and would need to be justified to the Global Forum."
The consultation period will run until April 14, 2017.