The New Zealand Law Society has issued a Practice Briefing on the Automatic Exchange of Information/Common Reporting Standard (AEOI/CRS) regime which comes into force in New Zealand on 1 July 2017.

The OECD-developed regime has important implications for lawyers in relation to operating their practices and solicitors' trust accounts. Lawyers will also need to be familiar with the regime in their advisory capacity.

AEOI/CRS is an information collection and reporting regime. Information about foreign tax residents is collected in New Zealand and reported to the Inland Revenue Department for exchange with international partners.

The Practice Briefing gives an introduction to AEOI/CRS and its key concepts. It says most New Zealand law firms are expected to be Active NFEs, with no reporting obligations.

"However, lawyers acting in other capacities, such as trustees, will meet the CRS definition of Entity (which includes a legal arrangement) and will have to review their status under the New Zealand CRS Applied Standard, and any resulting obligations, carefully."

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