Royal assent is expected to be given in the next week which will pave the way for the Bill to come into force before FATCA’s 1 July 2014 start date.
Whilst many financial institutions have been proceeding on the basis that they need to be FATCA compliant from 1 July 2014, confirmation of the legal basis to comply with FATCA will be welcomed.
As previously noted, the enabling legislation includes provisions for Inland Revenue to impose penalties on financial institutions that fail to register for FATCA. Accordingly, it is important that all financial institutions identify the impacts of FATCA and take the appropriate steps to comply.
Now that the Bill is passed and the Intergovernmental Agreement is signed, Inland Revenue is working to release its guidance on the application of FATCA in New Zealand. We hope that the guidance will be released soon and include comments on the various transitional provisions that could apply