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Determination CRS 2019/015 – a Member’s Account in a Workplace Savings Scheme is an excluded account for the purposes of the CRS applied standard and requirements under Part 11B of the Tax Administration Act 1994.
This determination is made under section 91AAW of the Tax Administration Act 1994.
In this determination, unless the context otherwise requires:
“AML/CFT Act 2009” means the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
“AML regulation” means anti-money laundering and countering financing of terrorism regulation under the AML/CFT Act 2009 (as modified by any applicable AML exemption pursuant to the AML/CFT Act 2009).
“CRS applied standard” means the CRS standard as modified by section 185O for the determination of requirements under the Tax Administration Act 1994.
“CRS publication” means the Standard for Automatic Exchange of Financial Account Information in Tax Matters, published by the Organisation for Economic Co-operation and Development.
“CRS reporting period” means the period from 1 April 2018-31 March 2019 and any subsequent 12-month period from 1 April to the following 31 March.
“CRS standard” means the Common Standard on Reporting and Due Diligence for Financial Account Information, as amended from time to time, which is a standard:
“Employee” means an employee of an Employer.
“Employer” means an entity that is (or at the relevant time was) an employer (or an associated entity) participating in or otherwise contributing to the Scheme for the benefit of a Member who is (or at the relevant time was) an Employee of that Employer or an Employee of an associated entity.
“ESCT” has the same meaning as in s YA 1 of the ITA 2007.
"Financial Account" has the same meaning as in Section VIII(C)(1) of the CRS standard.
“FMC Act 2013” means the Financial Markets Conduct Act 2013.
“ITA 2007” means the Income Tax Act 2007.
“Member” means a natural person who holds an account in the Scheme.
“Member’s Account” means an account held by a Member in the Scheme.
“Overseas Secondment” means a period of secondment from the Employer to perform services for or at the direction of the Employer (or a third party) outside New Zealand. For secondments for any period from 1 July 2017 (inclusive), this definition means a period of secondment from the Employer to perform services for or at the direction of the Employer (or a third party) outside New Zealand for a continuous period of up to one year.
“PAYE” has the same meaning as in s YA 1 of the ITA 2007.
“Permitted withdrawal” means a withdrawal that is permitted to be made from a registered workplace savings scheme in accordance with s 130 of the FMC Act 2013.
“Register of managed investment schemes” is defined in section 6 of the FMC Act 2013 and means the register of managed investment schemes kept under Schedule 2 of that Act.
“Retirement or pension account” means an excluded account that fully satisfies the requirements of subparagraph C(17)(a) of Section VIII of the CRS standard.
“Scheme” means a scheme that is registered on the register of managed investment schemes as a workplace savings scheme under the FMC Act 2013.
“Temporary Absence Contribution” means a contribution (if applicable) made by a Member to a Member’s Account (in accordance with the Scheme’s trust deed) while on an absence from work agreed with their Employer.
“Work Visa” means a temporary visa granted under the Immigration Act 2009.
In this determination, any reference to a statute includes that statute as amended or replaced from time to time, and any reference to a section is to the corresponding section of any amended or re-enacted statute.
Each of the Schemes covered by this determination primarily conducts a business of investing, administering or managing financial assets or money on behalf of the Scheme’s Members. Therefore, in terms of the CRS standard, the Scheme is an investment entity financial institution.
As a workplace savings scheme (registered as such under the FMC Act 2013) each Scheme has the purposes of providing retirement, disability, and death benefits as well as benefits to Members on ceasing employment with an Employer (whether immediately on ceasing that employment or subsequently).
A Member’s Account does not fully satisfy the requirements for a retirement or pension account in subparagraph C(17)(a) of Section VIII of the CRS standard, but has substantially similar characteristics as well as other substituting characteristics which provide an equivalent level of assurance that such an account presents a low risk of being used to evade tax.
This determination is issued by the Commissioner of Inland Revenue and applies to a Member’s Account in the Scheme where each of the following conditions is satisfied (for the Scheme or the Member’s Account as applicable):
Determining that a Member’s Account in the Scheme is an excluded account, and specifying this under New Zealand law, does not frustrate the purposes of the CRS standard.
A Member’s Account in the Scheme, as outlined in the scope of this determination, is an excluded account for the purposes of the CRS applied standard and requirements under Part 11B of the Tax Administration Act 1994. If any of the above conditions are not satisfied for a particular Member’s Account this determination will not apply to that account.
This determination applies for the CRS reporting period beginning 1 April 2018, and subsequent CRS reporting periods under the CRS applied standard.
Dated at Wellington this 30th day of July 2019.
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