The Inland Revenue Department has released a fact sheet on Automatic Exchange of Financial Account Information for financial institutions.

From 1 July 2017, New Zealand financial institutions (unless exempted) will need to review their accounts and collect and report information to Inland Revenue on accounts held or (in certain circumstances) controlled by non-residents.

Where necessary, Inland Revenue will then share that information with other tax jurisdictions in specific countries. The objective is to help eradicate tax evasion.

The IRD information is based on feedback received from its recent consultation and will form the basis of draft legislation to be introduced in August 2016. The legislation is expected to gain Royal Assent in March 2017.

IRD says that as the information remains subject to parliamentary process it should not be considered final.