Issue Forty Four, October 2010
FOREIGN INVESTMENTS
DID YOU KNOW?
FOREIGN INVESTMENTS
In a recent press release, the Inland Revenue Department have announced that they are now targeting New Zealand tax residents who have undeclared foreign income and investments. In particular the department will be targeting the non disclosure of offshore bank accounts, overseas life insurance policies, overseas superannuation funds and the use of foreign credit and debit cards.
If you hold investments overseas please contact us to confirm that these investments have been considered from an Income Tax perspective.
Do you pay tax overseas?
Migrants paying tax in their home country need to declare this income and tax paid in their New Zealand Tax return even if the funds are not brought to New Zealand.
Once a person is a New Zealand tax resident they are liable to tax in New Zealand on their worldwide income, unless an exemption applies. There is a transitional resident's exemption in the event that the individual became a resident after April 2006 however, the exemption will not apply to all cases.
Did You Know?
Investments in foreign shares, unit trusts and equities are potentially subject to Foreign Investment Fund rules. Please provide details of any such investments to us with your tax return information to enable us to determine whether tax obligations may be owed on these investments.
For individuals who receive distributions from a foreign trust, this distribution may be taxable in New Zealand, even if tax has been paid overseas. Please advise HWI Limited of any such distributions upon receipt to enable us to determine resultant tax liabilities.
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice. The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
