Mitigating the Risks and the Practical Implications
MLI imposes a requirement on domestic residents to obtain a tax residence determination if a trustee or director emigrated offshore or migrated to New Zealand. The CRS compliance is a due diligence and reporting requirement of New Zealand entities. Non-compliance might have significant impacts on the withholding tax obligations and tax obligation of the underlying structure.
The Common reporting Standard (CRS) is the single global standard which imposes due diligence and reporting obligations on certain New Zealand entities to identify and report particulars relating to their settlors, beneficiaries, partners, trustees or any other person that has provided a loan or made an advance payment to the entity.
The Multilateral Instrument (MLI) were developed through a negation involving more than 100 countries and was adopted in November 2016. New Zealand enforced the instrument in 2019. The MLI modifies the application of the Double Tax Agreements and implanted minimum standards to counter treaty abuse. A director of a company or trust might have an obligation to obtain a tax residence determination for the underlying structure under the MLI and non compliance means a significant exposure to higher withholding taxes and the application of the penalty tax rate for trusts (45%).
The webinar will refresh the key elements of CRS and the MLI to mitigate the risks for accountants and their clients.
28 February 2023
Attendees will be able to refresh their understanding of the CRS due diligence requirements to ensure clients and accountants are able to comply. The webinar will enable participants to understand both set of rules, how they might interact and illustrates the risks on simple case examples. The webinar will address the impact of non-compliance on capital and/or income distributions, potential penalties and withholding tax requirements.
Accountants, Lawyers, Trustees and Beneficiaries in New Zealand.
Dr Peter Loerscher, International Tax Limited (presenting on behalf of TEO).
1.25 CPD Hours