Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698943072176.pdf (New Zealand)
2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Jerry Mateparae, Governor-General Order in Council At Wellington this 23rd day of June 2014 Present: The Right Hon John Key presiding in Council Pursuant to section BH 1 of the Income Tax Act 2007, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following order.
Contents Title Commencement Commencement of agreement Purposes Arrangements to have effect Page 2 2 2 2 2 1 cl 1 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Agreement between the Government of New Zealand and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA 2014/209 3 Order Title This order is the Double Tax Agreements (United States of America—FATCA) Order 2014.
Commencement This order comes into force on 1 July 2014.

Commencement of agreement The agreement set out in the Schedule (the agreement) comes into force on the date provided for in Article 10 of the agree- ment.

Purposes The arrangements specified in the agreement have been nego- tiated with the Government of the United States of America for 1 or more of the purposes set out in section BH 1(2) of the Income Tax Act 2007.
Arrangements to have effect The arrangements specified in the agreement have effect ac- cording to the tenor of the agreement.
2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule cl 3 Schedule Agreement between the Government of New Zealand and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA Whereas, the Government of New Zealand and the Government of the United States of America (each, a “Party,” and together, the “Par- ties”) have a longstanding and close relationship with respect to mu- tual assistance in tax matters and desire to conclude an agreement to improve international tax compliance by further building on that re- lationship; Whereas, Article 25 of the Convention between the United States of America and New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related Protocol, done at Wellington on July 23, 1982, as amended by a Protocol, done at Washington on December 1, 2008 (the “Convention”) authorizes exchange of information for tax pur- poses, including on an automatic basis; Whereas, the United States of America enacted provisions commonly known as the Foreign Account Tax Compliance Act (“FATCA”), which introduce a reporting regime for financial institutions with re- spect to certain accounts; Whereas, the Government of New Zealand is supportive of the under- lying policy goal of FATCA to improve tax compliance; Whereas, FATCA has raised a number of issues, including that New Zealand financial institutions may not be able to comply with certain aspects of FATCA due to domestic legal impediments; Whereas, the Government of the United States of America collects information regarding certain accounts maintained by U.S. financial institutions held by residents of New Zealand and is committed to exchanging such information with the Government of New Zealand and pursuing equivalent levels of exchange; Whereas, the Parties are committed to working together over the longer term towards achieving common reporting and due diligence standards for
 financial institutions; 3 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Whereas, the Government of the United States of America acknow- ledges the need to coordinate the reporting obligations under FATCA with other U.S. tax reporting obligations of New Zealand financial in- stitutions to avoid duplicative reporting; Whereas, an intergovernmental approach to FATCA implementation would address legal impediments and reduce burdens for New Zealand financial institutions; Whereas, the Parties desire to conclude an agreement to improve international tax compliance and provide for the implementation of FATCA based on domestic reporting and reciprocal automatic ex- change pursuant to the Convention and subject to the confidentiality and other protections provided for therein, including the provisions limiting the use of the information exchanged under the Convention; Now, therefore, the Parties have agreed as follows: Article 1 Definitions For purposes of this agreement and any annexes thereto (“Agreement”), the following terms shall have the meanings set forth below: a) The term “United States” means the United States of America, including the States thereof, but does not in- clude the U.S.
Territories.

Any reference to a “State” of the United States includes the District of Columbia.

The term “U.S.

Territory” means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or the U.S. Virgin Islands.

The term “IRS” means the U.S. Internal Revenue Ser- vice.

The term “New Zealand” means the territory of New Zealand but does not include Tokelau.
The term “Partner Jurisdiction” means a jurisdiction that has in effect an agreement with the United States to facilitate the implementation of FATCA.

The IRS shall publish a list identifying all Partner Jurisdictions.

The term “Competent Authority” means: b) c) d) e) f) 1.
4 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 1—continued (1) (2) in the case of the United States, the Secretary of the Treasury or a delegate of the Secretary; and in the case of New Zealand, the Commissioner of Inland Revenue or an authorised representative of the Commissioner.

g) h) i) j) The term “Financial Institution” means a Custodial In- stitution, a Depository Institution, an Investment Entity, or a Specified Insurance Company.
The term “Custodial Institution” means any Entity that holds, as a substantial portion of its business, fi- nancial assets for the account of others.
An entity holds financial assets for the account of others as a substan- tial portion of its business if the entity’s gross income attributable to the holding of financial assets and re- lated financial services equals or exceeds 20 percent of the entity’s gross income during the shorter of: (i) the three-year period that ends on December 31 (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made; or (ii) the period during which the entity has been in exis- tence.
The term “Depository Institution” means any Entity that accepts deposits in the ordinary course of a banking or similar business.

The term “Investment Entity” means any Entity that conducts as a business (or is managed by an entity that conducts as a business) one or more of the following activities or operations for or on behalf of a customer: trading in money market instruments (cheques, (1) bills, certificates of deposit, derivatives, etc.
); foreign exchange; exchange, interest rate and in- dex instruments; transferable securities; or com- modity futures trading; individual and collective portfolio management; or otherwise investing, administering, or managing funds or money on behalf of other persons.
(2) (3) 5 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 k) l) m) n) o) p) Article 1—continued This subparagraph 1(j) shall be interpreted in a manner consistent with similar language set forth in the defin- ition of “financial institution” in the Financial Action Task Force Recommendations.
The term “Specified Insurance Company” means any Entity that is an insurance company (or the holding company of an insurance company) that issues, or is ob- ligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.
The term “New Zealand Financial Institution” means (i) any Financial Institution resident in New Zealand, but excluding any branch of such Financial Institution that is located outside New Zealand; and (ii) any branch of a Financial Institution not resident in New Zealand, if such branch is located in New Zealand.
The term “Partner Jurisdiction Financial Institu- tion” means (i) any Financial Institution established in a Partner Jurisdiction, but excluding any branch of such Financial Institution that is located outside the Partner Jurisdiction; and (ii) any branch of a Financial Institution not established in the Partner Jurisdiction, if such branch is located in the Partner Jurisdiction.
The term “Reporting Financial Institution” means a Reporting New Zealand Financial Institution or a Re- porting U.S. Financial Institution, as the context re- quires.

The term “Reporting New Zealand Financial Institu- tion” means any New Zealand Financial Institution that is not a Non-Reporting New Zealand Financial Institu- tion.
The term “Reporting U.S. Financial Institution” means (i) any Financial Institution that is resident in the United States, but excluding any branch of such Financial Institution that is located outside the United States; and (ii) any branch of a Financial Institution not resident in the United States, if such branch is located in the United States, provided that the Financial Institution or branch has control, receipt, or custody of 6 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 1—continued q) r) s) income with respect to which information is required to be exchanged under subparagraph (2)(b) of Article 2 of this Agreement.
The term “Non-Reporting New Zealand Financial Institution” means any New Zealand Financial Insti- tution, or other Entity resident in New Zealand that is described in Annex II as a Non-Reporting New Zealand Financial Institution or that otherwise qualifies as a deemed-compliant FFI or an exempt beneficial owner under relevant U.S. Treasury Regulations.
The term “Nonparticipating Financial Institution” means a nonparticipating FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not include a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution other than a Financial Institution treated as a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of Article 5 of this Agreement or the corresponding provision in an agreement between the United States and a Partner Jurisdiction.
The term “Financial Account” means an account main- tained by a Financial Institution, and includes: (1) in the case of an Entity that is a Financial Insti- tution solely because it is an Investment Entity, any equity or debt interest (other than interests that are regularly traded on an established secur- ities market) in the Financial Institution; in the case of a Financial Institution not described in subparagraph 1(s)(1) of this Article, any equity or debt interest in the Financial Institution (other than interests that are regularly traded on an es- tablished securities market), if (i) the value of the debt or equity interest is determined, directly or indirectly, primarily by reference to assets that give rise to U.S.
Source Withholdable Payments; and (ii) the class of interests was established with a purpose of avoiding reporting in accordance with this Agreement; and (2) 7 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 1—continued (3) any Cash Value Insurance Contract and any issued or maintained by a Annuity Contract Financial Institution, other than a noninvest- ment-linked, nontransferable immediate life annuity that is issued to an individual and mon- etizes a pension or disability benefit provided under an account, product, or arrangement that is excluded from the definition of Financial Ac- count in Annex II.
Notwithstanding the foregoing, the term “Financial Ac- count” does not include any account, product, or ar- rangement that is excluded from the definition of Finan- cial Account in Annex II.
For purposes of this Agree- ment, interests are “regularly traded” if there is a mean- ingful volume of trading with respect to the interests on an ongoing basis, and an “established securities mar- ket” means an exchange that is officially recognized and supervised by a governmental authority in which the market is located and that has a meaningful annual value of shares traded on the exchange.
For purposes of this subparagraph 1(s), an interest in a Financial Institution is not “regularly traded” and shall be treated as a Finan- cial Account if the holder of the interest (other than a Financial Institution acting as an intermediary) is regis- tered on the books of such Financial Institution.
The preceding sentence will not apply to interests first regis- tered on the books of such Financial Institution prior to July 1, 2014, and with respect to interests first registered on the books of such Financial Institution on or after July 1, 2014, a Financial Institution is not required to apply the preceding sentence prior to January 1, 2016.
The term “Depository Account” includes any commer- cial, checking, savings, time, or thrift account, or an ac- count that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebt- edness, or other similar instrument maintained by a Fi- nancial Institution in the ordinary course of a banking or t) 8 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 1—continued similar business.
A Depository Account also includes an amount held by an insurance company pursuant to a guaranteed investment contract or similar agreement to pay or credit interest thereon.
The term “Custodial Account” means an account (other than an Insurance Contract or Annuity Contract) for the benefit of another person that holds any financial instrument or contract held for investment (including, but not limited to, a share or stock in a corporation, a note, bond, debenture, or other evidence of indebt- edness, a currency or commodity transaction, a credit default swap, a swap based upon a nonfinancial index, a notional principal contract, an Insurance Contract or Annuity Contract, and any option or other derivative instrument).
The term “Equity Interest” means, in the case of a part- nership that is a Financial Institution, either a capital or profits interest in the partnership.

In the case of a trust that is a Financial Institution, an Equity Interest is con- sidered to be held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any other natural person exercising ultimate effective control over the trust.

A Specified U.S.
A Specified U.S.

Person shall be treated as be- ing a beneficiary of a foreign trust if such Specified U.S.

Person has the right to receive directly or indirectly (for example, through a nominee) a mandatory distribution or may receive, directly or indirectly, a discretionary distribution from the trust.
The term “Insurance Contract” means a contract (other than an Annuity Contract) under which the is- suer agrees to pay an amount upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk.

The term “Annuity Contract” means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals.
The term 9 u) v) w) x) Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 1—continued y) z) also includes a contract that is considered to be an An- nuity Contract in accordance with the law, regulation, or practice of the jurisdiction in which the contract was issued, and under which the issuer agrees to make pay- ments for a term of years.
The term “Cash Value Insurance Contract” means an Insurance Contract (other than an indemnity reinsur- ance contract between two insurance companies) that has a Cash Value greater than $50,000.

The term “Cash Value” means the greater of (i) the amount that the policyholder is entitled to receive upon surrender or termination of the contract (determined without reduction for any surrender charge or policy loan), and (ii) the amount the policyholder can borrow under or with regard to the contract.
Notwithstanding the foregoing, the term “Cash Value” does not include an amount payable under an Insurance Contract as: (1) a personal injury or sickness benefit or other benefit providing indemnification of an eco- nomic loss incurred upon the occurrence of the event insured against; a refund to the policyholder of a previously paid premium under an Insurance Contract (other than under a life insurance contract) due to policy can- cellation or termination, decrease in risk expos- ure during the effective period of the Insurance Contract, or arising from a redetermination of the premium due to correction of posting or other similar error; or a policyholder dividend based upon the under- writing experience of the contract or group in- volved.
(2) (3) aa) bb) The term “Reportable Account” means a U.S. Re- portable Account or a New Zealand Reportable Ac- count, as the context requires.
The term “New Zealand Reportable Account” means a Financial Account maintained by a Reporting U.S. Fi- nancial Institution if: (i) in the case of a Depository 10 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule cc) dd) Article 1—continued Account, the account is held by an individual resident in New Zealand and more than $10 of interest is paid to such account in any given calendar year; or (ii) in the case of a Financial Account other than a Deposi- tory Account, the Account Holder is a resident of New Zealand, including an Entity that certifies that it is resi- dent in New Zealand for tax purposes, with respect to which U.S. source income that is subject to reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal Revenue Code is paid or credited.
The term “U.S.

Reportable Account” means a Finan- cial Account maintained by a Reporting New Zealand Financial Institution and held by one or more Speci- fied U.S.

Persons or by a Non-U.S.

Entity with one or more Controlling Persons that is a Specified U.S. Per- son.

Notwithstanding the foregoing, an account shall not be treated as a U.S. Reportable Account if such ac- count is not identified as a U.S. Reportable Account after application of the due diligence procedures in An- nex I.
The term “Account Holder” means the person listed or identified as the holder of a Financial Account by the Fi- nancial Institution that maintains the account.

A person, other than a Financial Institution, holding a Financial Account for the benefit or account of another person as agent, custodian, nominee, signatory, investment advi- sor, or intermediary, is not treated as holding the account for purposes of this Agreement, and such other person is treated as holding the account.
For purposes of the im- mediately preceding sentence, the term “Financial In- stitution” does not include a Financial Institution orga- nized or incorporated in a U.S.

Territory.

In the case of a Cash Value Insurance Contract or an Annuity Contract, the Account Holder is any person entitled to access the Cash Value or change the beneficiary of the contract.
If no person can access the Cash Value or change the beneficiary, the Account Holder is any person named as the owner in the contract and any person with a vested 11 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 ee) ff) Article 1—continued entitlement to payment under the terms of the contract.

Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, each person entitled to receive a payment under the contract is treated as an Account Holder.
The term “U.S.
Person” means a U.S. citizen or resi- dent individual, a partnership or corporation organized in the United States or under the laws of the United States or any State thereof, a trust if (i) a court within the United States would have authority under applicable law to render orders or judgments concerning substan- tially all issues regarding administration of the trust; and (ii) one or more U.S. persons have the authority to con- trol all substantial decisions of the trust, or an estate of a decedent that is a citizen or resident of the United States.
This subparagraph 1(ee) shall be interpreted in accord- ance with the U.S. Internal Revenue Code.
The term “Specified U.S. Person” means a U.S. Per- son, other than: (i) a corporation the stock of which is regularly traded on one or more established secur- ities markets; (ii) any corporation that is a member of the same expanded affiliated group, as defined in sec- tion 1471(e)(2) of the U.S. Internal Revenue Code, as a corporation described in clause (i); (iii) the United States or any wholly owned agency or instrumentality thereof; (iv) any State of the United States, any U.S.
Territory, any political subdivision of any of the fore- going, or any wholly owned agency or instrumentality of any one or more of the foregoing; (v) any organiza- tion exempt from taxation under section 501(a) of the U.S. Internal Revenue Code or an individual retirement plan as defined in section 7701(a)(37) of the U.S. Inter- nal Revenue Code; (vi) any bank as defined in section 581 of the U.S. Internal Revenue Code; (vii) any real estate investment trust as defined in section 856 of the U.S. Internal Revenue Code; (viii) any regulated invest- ment company as defined in section 851 of the U.S. In- ternal Revenue Code or any entity registered with the 12 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 1—continued U.S. Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.
80a-64); (ix) any common trust fund as defined in section 584(a) of the U.S. Internal Revenue Code; (x) any trust that is exempt from tax under section 664(c) of the U.S. Internal Revenue Code or that is described in section 4947(a)(1) of the U.S. Internal Revenue Code; (xi) a dealer in securities, commodities, or derivative finan- cial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any State; (xii) a broker as defined in section 6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust under a plan that is described in section 403(b) or section 457(b) of the U.S. Internal Revenue Code.
The term “Entity” means a legal person or a legal ar- rangement such as a trust.

The term “Non-U.S. Entity” means an Entity that is not a U.S.

Person.

The term “U.S.

Source Withholdable Payment” means any payment of interest (including any ori- ginal issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States.
Notwith- standing the foregoing, a U.S.

Source Withholdable Payment does not include any payment that is not treated as a withholdable payment in relevant U.S. Treasury Regulations.

An Entity is a “Related Entity” of another Entity if either Entity controls the other Entity, or the two En- tities are under common control.

For this purpose con- trol includes direct or indirect ownership of more than 50 percent of the vote or value in an Entity.
Notwith- standing the foregoing, New Zealand may treat an En- tity as not a Related Entity of another Entity if the two 13 gg) hh) ii) jj) Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 1—continued Entities are not members of the same expanded affili- ated group as defined in section 1471(e)(2) of the U.S. Internal Revenue Code.

The term “U.S.

TIN” means a U.S. federal taxpayer identifying number.
The term “New Zealand TIN” means a New Zealand taxpayer identifying number.

kk) ll) mm) The term “Controlling Persons” means the natural per- sons who exercise control over an Entity.
In the case of a trust, such term means the settlor, the trustees, the pro- tector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effect- ive control over the trust, and in the case of a legal ar- rangement other than a trust, such term means persons in equivalent or similar positions.

The term “Control- ling Persons” shall be interpreted in a manner consis- tent with the Financial Action Task Force Recommen- dations.
Any term not otherwise defined in this Agreement shall, un- less the context otherwise requires or the Competent Author- ities agree to a common meaning (as permitted by domestic law), have the meaning that it has at that time under the law of the Party applying this Agreement, any meaning under the ap- plicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.
Article 2 Obligations to Obtain and Exchange Information with Respect to Reportable Accounts Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the information specified in paragraph 2 of this Article with respect to all Reportable Accounts and shall annually exchange this information with the other Party on an automatic basis pursuant to the provisions of Article 25 of the Convention.

2.

1.
2.

1.

14 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 2—continued 2.

The information to be obtained and exchanged is: a) In the case of New Zealand with respect to each U.S. Reportable Account of each Reporting New Zealand Fi- nancial Institution: (1) (2) (3) (4) (5) the name, address, and U.S. TIN of each Spe- cified U.S.
Person that is an Account Holder of such account and, in the case of a Non-U.S. En- tity that, after application of the due diligence procedures set forth in Annex I, is identified as having one or more Controlling Persons that is a Specified U.S.

Person, the name, address, and U.S. TIN (if any) of such entity and each such Specified U.S.
Person; the account number (or functional equivalent in the absence of an account number); the name and identifying number of the Report- ing New Zealand Financial Institution; the account balance or value (including, in the case of a Cash Value Insurance Contract or Annu- ity Contract, the Cash Value or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the ac- count was closed during such year, immediately before closure; in the case of any Custodial Account: (A) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the ac- count, in each case paid or credited to the account (or with respect to the account) during the calendar year or other appropri- ate reporting period; and the total gross proceeds from the sale or redemption of property paid or credited to the account during the calendar year or other appropriate reporting period with re- spect to which the Reporting New Zealand (B) 15 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 (6) (7) Article 2—continued Financial Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder; in the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar year or other appro- priate reporting period; and in the case of any account not described in sub- paragraph 2(a)(5) or 2(a)(6) of this Article, the total gross amount paid or credited to the Ac- count Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the Reporting New Zealand Financial Institution is the obligor or debtor, including the aggregate amount of any re- demption payments made to the Account Holder during the calendar year or other appropriate re- porting period.
In the case of the United States, with respect to each New Zealand Reportable Account of each Reporting U.S. Financial Institution: (1) the name, address, and New Zealand TIN of any person that is a resident of New Zealand and is an Account Holder of the account; the account number (or the functional equivalent in the absence of an account number); the name and identifying number of the Report- ing U.S. Financial Institution; the gross amount of interest paid on a Depository Account; the gross amount of U.S. source dividends paid or credited to the account; and the gross amount of other U.S. source income paid or credited to the account, to the extent sub- ject to reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal Rev- enue Code.
(2) (3) (4) (5) (6) b) 16 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 3 Time and Manner of Exchange of Information 1.
For purposes of the exchange obligation in Article 2 of this Agreement, the amount and characterization of payments made with respect to a U.S. Reportable Account may be determined in accordance with the principles of the tax laws of New Zealand, and the amount and characterization of payments made with respect to a New Zealand Reportable Account may be determined in accordance with principles of U.S. federal income tax law.
For purposes of the exchange obligation in Article 2 of this Agreement, the information exchanged shall identify the cur- rency in which each relevant amount is denominated.

3.
With respect to paragraph 2 of Article 2 of this Agreement, information is to be obtained and exchanged with respect to 2014 and all subsequent years, except that: In the case of New Zealand: a) (1) 2. the information to be obtained and exchanged with respect to 2014 is the information described in subparagraphs 2(a)(1) through 2(a)(4) of Art- icle 2 of this Agreement; the information to be obtained and exchanged with respect to 2015 is the information described in subparagraphs 2(a)(1) through 2(a)(7) of Art- icle 2 of this Agreement, except for gross pro- ceeds described in subparagraph 2(a)(5)(B) of Article 2 of this Agreement; and the information to be obtained and exchanged with respect to 2016 and subsequent years is the information described in subparagraphs 2(a)(1) through 2(a)(7) of Article 2 of this Agreement; (2) (3) b) In the case of the United States, the information to be obtained and exchanged with respect to 2014 and sub- sequent years is all of the information identified in sub- paragraph 2(b) of Article 2 of this Agreement.
Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account that is maintained by a Reporting 4.
17 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 3—continued Financial Institution as of June 30, 2014, and subject to para- graph 4 of Article 6 of this Agreement, the Parties are not re- quired to obtain and include in the exchanged information the New Zealand TIN or the U.S. TIN, as applicable, of any rele- vant person if such taxpayer identifying number is not in the records of the Reporting Financial Institution.
In such a case, the Parties shall obtain and include in the exchanged informa- tion the date of birth of the relevant person, if the Reporting Financial Institution has such date of birth in its records.

Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of this Agreement shall be exchanged within nine months after the end of the calendar year to which the information relates.
The Competent Authorities of New Zealand and the United States shall enter into an arrangement under the mutual agree- ment procedure provided for in Article 24 of the Convention, which shall: a) establish the procedures for the automatic exchange obligations described in Article 2 of this Agreement; prescribe rules and procedures as may be necessary to implement Article 5 of this Agreement; and establish as necessary procedures for the exchange of the information reported under subparagraph 1(b) of Article 4 of this Agreement.
b) c) All information exchanged shall be subject to the confiden- tiality and other protections provided for in the Convention, including the provisions limiting the use of the information exchanged.

Article 4 Application of FATCA to New Zealand Financial Institutions Treatment of Reporting New Zealand Financial Institu- tions.

Each Reporting New Zealand Financial Institution shall be treated as complying with, and not subject to withholding 5.

6.

7.

1.
18 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 4—continued under, section 1471 of the U.S. Internal Revenue Code if New Zealand complies with its obligations under Articles 2 and 3 of this Agreement with respect to such Reporting New Zealand Financial Institution, and the Reporting New Zealand Financial Institution: a) b) c) d) e) identifies U.S. Reportable Accounts and reports annu- ally to the New Zealand Competent Authority the in- formation required to be reported in subparagraph 2(a) of Article 2 of this Agreement in the time and manner described in Article 3 of this Agreement; for each of 2015 and 2016, reports annually to the New Zealand Competent Authority the name of each Non- participating Financial Institution to which it has made payments and the aggregate amount of such payments; complies with the applicable registration requirements on the IRS FATCA registration website; to the extent that a Reporting New Zealand Financial Institution is (i) acting as a qualified intermediary (for purposes of section 1441 of the U.S. Internal Revenue Code) that has elected to assume primary withholding responsibility under chapter 3 of subtitle A of the U.S. Internal Revenue Code; (ii) a foreign partnership that has elected to act as a withholding foreign partnership (for purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code); or (iii) a foreign trust that has elected to act as a withholding foreign trust (for pur- poses of both sections 1441 and 1471 of the U.S. Inter- nal Revenue Code), withholds 30 percent of any U.S.
Source Withholdable Payment to any Nonparticipating Financial Institution; and in the case of a Reporting New Zealand Financial In- stitution that is not described in subparagraph 1(d) of this Article and that makes a payment of, or acts as an intermediary with respect to, a U.S.

Source With- holdable Payment to any Nonparticipating Financial In- stitution, the Reporting New Zealand Financial Insti- tution provides to any immediate payor of such U.S.
Source Withholdable Payment the information required 19 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 4—continued for withholding and reporting to occur with respect to such payment.
Notwithstanding the foregoing, a Reporting New Zealand Fi- nancial Institution with respect to which the conditions of this paragraph 1 are not satisfied shall not be subject to withholding under section 1471 of the U.S. Internal Revenue Code unless such Reporting New Zealand Financial Institution is treated by the IRS as a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of Article 5 of this Agreement.

Suspension of Rules Relating to Recalcitrant Accounts.
The United States shall not require a Reporting New Zealand Financial Institution to withhold tax under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such account, if the U.S.
Competent Authority receives the information set forth in subparagraph 2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement, with respect to such account.

Specific Treatment of New Zealand Retirement Plans.

The United States shall treat as deemed-compliant FFIs or ex- empt beneficial owners, as appropriate, for purposes of sec- tions 1471 and 1472 of the U.S. Internal Revenue Code New Zealand retirement plans described in Annex II.
For this pur- pose, a New Zealand retirement plan includes an Entity estab- lished or located in, and regulated by, New Zealand, or a pre- determined contractual or legal arrangement, operated to pro- vide pension or retirement benefits or earn income for provid- ing such benefits under the laws of New Zealand and regulated with respect to contributions, distributions, reporting, sponsor- ship, and taxation.

Identification and Treatment of Other Deemed-Compliant FFIs and Exempt Beneficial Owners.
The United States shall treat each Non-Reporting New Zealand Financial Institution as a deemed-compliant FFI or as an exempt beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code.

2.

3.

4.

20 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 4—continued 5.

Special Rules Regarding Related Entities and Branches That Are Nonparticipating Financial Institutions.
If a New Zealand Financial Institution, that otherwise meets the requirements described in paragraph 1 of this Article or is described in paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that prevents such Related Entity or branch from fulfilling the requirements of a participating FFI or deemed-compliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code or has a Related Entity or branch that is treated as a Nonparticipating Financial Institution solely due to the expiration of the transi- tional rule for limited FFIs and limited branches under relevant U.S. Treasury Regulations, such New Zealand Financial Insti- tution shall continue to be in compliance with the terms of this Agreement and shall continue to be treated as a deemed-com- pliant FFI or exempt beneficial owner, as appropriate, for pur- poses of section 1471 of the U.S. Internal Revenue Code, pro- vided that: a) the New Zealand Financial Institution treats each such Related Entity or branch as a separate Nonparticipating Financial Institution for purposes of all the reporting and withholding requirements of this Agreement and each such Related Entity or branch identifies itself to withholding agents as a Nonparticipating Financial In- stitution; each such Related Entity or branch identifies its U.S. ac- counts and reports the information with respect to those accounts as required under section 1471 of the U.S. In- ternal Revenue Code to the extent permitted under the relevant laws pertaining to the Related Entity or branch; and such Related Entity or branch does not specifically so- licit U.S. accounts held by persons that are not resident in the jurisdiction where such Related Entity or branch is located or accounts held by Nonparticipating Finan- cial Institutions that are not established in the jurisdic- tion where such Related Entity or branch is located, b) c) 21 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 4—continued and such Related Entity or branch is not used by the New Zealand Financial Institution or any other Related Entity to circumvent the obligations under this Agree- ment or under section 1471 of the U.S. Internal Revenue Code, as appropriate.
Coordination of Timing.
Notwithstanding paragraphs 3 and 5 of Article 3 of this Agree- ment: a) New Zealand shall not be obligated to obtain and ex- change information with respect to a calendar year that is prior to the calendar year with respect to which sim- ilar information is required to be reported to the IRS by participating FFIs pursuant to relevant U.S. Treas- ury Regulations; New Zealand shall not be obligated to begin exchang- ing information prior to the date by which participating FFIs are required to report similar information to the IRS under relevant U.S. Treasury Regulations; the United States shall not be obligated to obtain and exchange information with respect to a calendar year that is prior to the first calendar year with respect to which New Zealand is required to obtain and exchange information; and the United States shall not be obligated to begin ex- changing information prior to the date by which New Zealand is required to begin exchanging information.
b) c) d) Coordination of Definitions with U.S. Treasury Regula- tions.

Notwithstanding Article 1 of this Agreement and the defini- tions provided in the Annexes to this Agreement, in imple- menting this Agreement, New Zealand may use, and may per- mit New Zealand Financial Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding definition in this Agreement, provided that such application would not frustrate the purposes of this Agreement.

6.

7.
6.

7.

22 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 5 Collaboration on Compliance and Enforcement 1.

Minor and Administrative Errors.


Subject to any further terms set forth in a competent author- ity arrangement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the Competent Authority of the United States may make an inquiry directly to a Reporting Financial Institution in New Zealand where it has reason to believe that minor or administrative errors may have led to incorrect or in- complete information reporting or resulted in other infringe- ments of this Agreement.
The competent authority arrange- ment may provide that the Competent Authority of the United States shall notify the Competent Authority of New Zealand when it makes such an inquiry of a Reporting Financial Insti- tution in New Zealand regarding the Reporting Financial Insti- tution’s compliance with the conditions set forth in this Agree- ment.
The Competent Authority of New Zealand shall notify the Competent Authority of the United States where it has rea- son to believe that minor or administrative errors may have led to incorrect or incomplete reporting or resulted in other infringements of this Agreement.

The Competent Authority of each Party shall apply its domestic law to obtain corrected and/or complete information or to resolve other infringements of this Agreement.

Significant Non-Compliance.


a) A Competent Authority shall notify the Competent Authority of the other Party when the first-mentioned Competent Authority has determined that there is significant non-compliance with the obligations under this Agreement with respect to a Reporting Financial Institution in the other jurisdiction.

The Competent Authority of such other Party shall apply its domestic law (including applicable penalties) to address the significant non-compliance described in the notice.
If, in the case of a Reporting New Zealand Financial Institution, such enforcement actions do not resolve the non-compliance within a period of 18 months after noti- fication of significant non-compliance is first provided, b) 23 2.

Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 5—continued the United States shall treat the Reporting New Zealand Financial Institution as a Nonparticipating Financial In- stitution pursuant to this subparagraph 2(b).
Reliance on Third Party Service Providers.

Each Party may allow Reporting Financial Institutions to use third party service providers to fulfill the obligations imposed on such Reporting Financial Institutions by a Party, as contem- plated in this Agreement, but these obligations shall remain the responsibility of the Reporting Financial Institutions.

Prevention of Avoidance.


The Parties shall implement as necessary requirements to pre- vent Financial Institutions from adopting practices intended to circumvent the reporting required under this Agreement.

Article 6 Mutual Commitment to Continue to Enhance the Effectiveness of Information Exchange and Transparency Reciprocity.

The Government of the United States acknowledges the need to achieve equivalent levels of reciprocal automatic information exchange with the Government of New Zealand.
The Government of the United States is committed to further improve transparency and enhance the exchange relationship with New Zealand by pursuing the adoption of regulations and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal automatic information exchange.

Treatment of Passthru Payments and Gross Proceeds.


The Parties are committed to work together, along with Partner Jurisdictions, to develop a practical and effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes bur- den.

3.

4.

1.

2.

24 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 6—continued 3.

4.

1.

Development of Common Reporting and Exchange Model.
The Parties are committed to working with Partner Jurisdic- tions and the Organisation for Economic Co-operation and De- velopment on adapting the terms of this Agreement and other agreements between the United States and Partner Jurisdic- tions to a common model for automatic exchange of informa- tion, including the development of reporting and due diligence standards for financial institutions.

Documentation of Accounts Maintained as of June 30, 2014.
With respect to Reportable Accounts maintained by a Report- ing Financial Institution as of June 30, 2014: a) The United States commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial Institu- tions to obtain and report the New Zealand TIN of each Account Holder of a New Zealand Reportable Account as required pursuant to subparagraph 2(b)(1) of Article 2 of this Agreement; and New Zealand commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting New Zealand Financial Insti- tutions to obtain the U.S. TIN of each Specified U.S.
Person as required pursuant to subparagraph 2(a)(1) of Article 2 of this Agreement.
b) Article 7 Consistency in the Application of FATCA to Partner Jurisdictions New Zealand shall be granted the benefit of any more favor- able terms under Article 4 or Annex I of this Agreement re- lating to the application of FATCA to New Zealand Financial Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement pursuant to which the other Part- ner Jurisdiction commits to undertake the same obligations as New Zealand described in Articles 2 and 3 of this Agreement, 25 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Article 7—continued 2.
1.

2. and subject to the same terms and conditions as described therein and in Articles 5 through 9 of this Agreement.

The United States shall notify New Zealand of any such more favorable terms, and such more favorable terms shall apply automatically under this Agreement as if such terms were spe- cified in this Agreement and effective as of the date of the signing of the agreement incorporating the more favorable terms, unless New Zealand declines in writing the application thereof.
Article 8 Consultations and Amendments In case any difficulties in the implementation of this Agree- ment arise, either Party may request consultations to develop appropriate measures to ensure the fulfillment of this Agree- ment.

This Agreement may be amended by written mutual agree- ment of the Parties.

Unless otherwise agreed upon, such an amendment shall enter into force through the same procedures as set forth in paragraph 1 of Article 10 of this Agreement.
Article 9 Annexes The Annexes form an integral part of this Agreement.

Article 10 Term of Agreement The Parties shall notify each other in writing when their neces- sary internal procedures for entry into force have been com- pleted.

The Agreement shall enter into force on the date of the later of such notifications, and shall continue in force until terminated.

Either Party may terminate this Agreement by giving notice of termination in writing to the other Party.
Such termination shall become effective on the first day of the month following 1.

2.

26 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Article 10—continued 3. the expiration of a period of 12 months after the date of the notice of termination.
The Parties shall, prior to December 31, 2016, consult in good faith to amend this Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this Agreement In witness whereof, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

Done at Wellington, in duplicate in the English language, this 12th day of June, 2014.
For the Government of New Zealand: For the Government of the United States of America: Todd M McClay Marie C Damour 27 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I Due Diligence Obligations for Identifying and Reporting on U.S. Reportable Accounts and on Payments to Certain Nonparticipating Financial Institutions General New Zealand shall require that Reporting New Zealand Finan- cial Institutions apply the due diligence procedures contained in this Annex I to identify U.S. Reportable Accounts and ac- counts held by Nonparticipating Financial Institutions.
For purposes of the Agreement, 1.

All dollar amounts are in U.S. dollars and shall be read to include the equivalent in other currencies.

Except as otherwise provided herein, the balance or value of an account shall be determined as of the last day of the calendar year or other appropriate reporting period.

2.

4.

3.
2.

4.

3.

Where a balance or value threshold is to be determined as of June 30, 2014 under this Annex I, the relevant balance or value shall be determined as of that day, and where a balance or value threshold is to be determined as of the last day of a calendar year under this Annex I, the relevant balance or value shall be determined as of the last day of the calendar year or other appropriate reporting period.
Subject to subparagraph E(1) of section II of this An- nex I, an account shall be treated as a U.S. Reportable Account beginning as of the date it is identified as such pursuant to the due diligence procedures in this Annex I.

Unless otherwise provided, information with respect to a U.S. Reportable Account shall be reported annually in the calendar year following the year to which the information relates.

5.
5.

As an alternative to the procedures described in each section of this Annex I, New Zealand may permit Reporting New Zealand Financial Institutions to rely on the procedures de- scribed in relevant U.S. Treasury Regulations to establish I.

A.

B. C. 28 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued whether an account is a U.S. Reportable Account or an account held by a Nonparticipating Financial Institution.
New Zealand may permit Reporting New Zealand Financial Institutions to make such election separately for each section of this Annex I either with respect to all relevant Financial Accounts or, separately, with respect to any clearly identified group of such accounts (such as by line of business or the location of where the account is maintained).

Preexisting Individual Accounts.

II.


The following rules and procedures apply for purposes of identify- ing U.S. Reportable Accounts among Preexisting Accounts held by individuals (“Preexisting Individual Accounts”).

A.

Accounts Not Required to Be Reviewed, Identified, or Re- ported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either with respect to all Preexisting Individual Ac- counts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in New Zealand provide for such an election, the following Preexist- ing Individual Accounts are not required to be reviewed, iden- tified, or reported as U.S. Reportable Accounts: 1.

2.

3.
2.

3.

Subject to subparagraph E(2) of this section, a Preex- isting Individual Account with a balance or value that does not exceed $50,000 as of June 30, 2014.

Subject to subparagraph E(2) of this section, a Preexist- ing Individual Account that is a Cash Value Insurance Contract or an Annuity Contract with a balance or value of $250,000 or less as of June 30, 2014.
A Preexisting Individual Account that is a Cash Value Insurance Contract or an Annuity Contract, provided the law or regulations of New Zealand or the United States effectively prevent the sale of such a Cash Value Insurance Contract or an Annuity Contract to U.S. resi- dents (e.g., if the relevant Financial Institution does not have the required registration under U.S. law, and the law of New Zealand requires reporting or withholding 29 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued with respect to insurance products held by residents of New Zealand).
A Depository Account with a balance of $50,000 or less.

4.

B.

Review Procedures for Preexisting Individual Accounts With a Balance or Value as of June 30, 2014, that Exceeds $50,000 ($250,000 for a Cash Value Insurance Contract or Annuity Contract), But Does Not Exceed $1,000,000 (“Lower Value Accounts”).

1. f) d) e) b) c) The Reporting New Electronic Record Search.
Zealand Financial Institution must review electronic- ally searchable data maintained by the Reporting New Zealand Financial Institution for any of the following U.S. indicia: a) Identification of the Account Holder as a U.S. citizen or resident; Unambiguous indication of a U.S. place of birth; Current U.S. mailing or residence address (in- cluding a U.S. post office box); Current U.S. telephone number; Standing instructions to transfer funds to an ac- count maintained in the United States; Currently effective power of attorney or signa- tory authority granted to a person with a U.S. ad- dress; or An “in-care-of” or “hold mail” address that is the sole address the Reporting New Zealand Finan- cial Institution has on file for the Account Holder.
In the case of a Preexisting Individual Account that is a Lower Value Account, an “in-care-of” address outside the United States or “hold mail” address shall not be treated as U.S. indicia.

If none of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, then no further action is required until there is a change in circumstances that results in one or more U.S. indi- cia being associated with the account, or the account g) 2.
30 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule 3.

4.

Annex I—continued becomes a High Value Account described in paragraph D of this section.
If any of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, or if there is a change in circumstances that results in one or more U.S. indicia being associated with the account, then the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account un- less it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account.
Notwithstanding a finding of U.S. indicia under sub- paragraph B(1) of this section, a Reporting New Zealand Financial Institution is not required to treat an account as a U.S. Reportable Account if: a) Where the Account Holder information unam- biguously indicates a U.S. place of birth, the Re- porting New Zealand Financial Institution ob- tains, or has previously reviewed and maintains a record of: (1) A self-certification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); (2) A non-U.S. passport or other government- issued identification evidencing the Ac- count Holder’s citizenship or nationality in a country other than the United States; and (3) A copy of the Account Holder’s Certificate of Loss of Nationality of the United States or a reasonable explanation of: (a) The reason the Account Holder does not have such a certificate de- spite relinquishing U.S. citizenship; or The reason the Account Holder did not obtain U.S. citizenship at birth.
(b) 31 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued b) Where the Account Holder information contains a current U.S. mailing or residence address, or one or more U.S. telephone numbers that are the only telephone numbers associated with the ac- count, the Reporting New Zealand Financial In- stitution obtains, or has previously reviewed and maintains a record of: (1) A self-certification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); and (2) Documentary evidence, as defined in para- graph D of section VI of this Annex I, es- tablishing the Account Holder’s non-U.S. status.
c) Where the Account Holder information contains standing instructions to transfer funds to an ac- count maintained in the United States, the Re- porting New Zealand Financial Institution ob- tains, or has previously reviewed and maintains a record of: (1) A self-certification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); and (2) Documentary evidence, as defined in para- graph D of section VI of this Annex I, es- tablishing the Account Holder’s non-U.S. status.
d) Where the Account Holder information contains a currently effective power of attorney or signa- tory authority granted to a person with a U.S. ad- dress, has an “in-care-of” address or “hold mail” address that is the sole address identified for the Account Holder, or has one or more U.S. tele- phone numbers (if a non-U.S. telephone number 32 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued is also associated with the account), the Report- ing New Zealand Financial Institution obtains, or has previously reviewed and maintains a record of: (1) A self-certification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); or (2) Documentary evidence, as defined in para- graph D of section VI of this Annex I, es- tablishing the Account Holder’s non-U.S. status.
C. Additional Procedures Applicable to Preexisting Indi- vidual Accounts That Are Lower Value Accounts.

1.

2.

3. Review of Preexisting Individual Accounts that are Lower Value Accounts for U.S. indicia must be com- pleted by June 30, 2016.
If there is a change of circumstances with respect to a Preexisting Individual Account that is a Lower Value Account that results in one or more U.S. indicia described in subparagraph B(1) of this section being associated with the account, then the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account unless subparagraph B(4) of this section applies.
Except for Depository Accounts described in subpara- graph A(4) of this section, any Preexisting Individual Account that has been identified as a U.S. Reportable Account under this section shall be treated as a U.S. Reportable Account in all subsequent years, unless the Account Holder ceases to be a Specified U.S.

Person.
Person.

33 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued Enhanced Review Procedures for Preexisting Indi- vidual Accounts With a Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or December 31 of 2015 or Any Subsequent Year (“High Value Accounts”).

1.

2.

If Electronic Record Search.


The Reporting New Zealand Financial Institution must review electronic- ally searchable data maintained by the Reporting New Zealand Financial Institution for any of the U.S. indicia described in subparagraph B(1) of this section.

the Reporting New Paper Record Search.


Zealand Financial Institution’s electronically search- able databases include fields for, and capture all of the information described in, subparagraph D(3) of this section, then no further paper record search is required.
If the electronic databases do not capture all of this in- formation, then with respect to a High Value Account, the Reporting New Zealand Financial Institution must also review the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with the account and obtained by the Reporting New Zealand Financial Institution within the last five years for any of the U.S. indicia described in subparagraph B(1) of this section: The most recent documentary evidence collected a) with respect to the account; The most recent account opening contract or documentation; The most recent documentation obtained by the Reporting New Zealand Financial Institution pursuant to AML/KYC Procedures or for other regulatory purposes; Any power of attorney or signature authority forms currently in effect; and Any standing instructions to transfer funds cur- rently in effect.
d) b) e) c) 3.

Exception Where Databases Contain Sufficient In- formation.
A Reporting New Zealand Financial Insti- tution is not required to perform the paper record search D. 34 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued described in subparagraph D(2) of this section if the Re- porting New Zealand Financial Institution’s electronic- ally searchable information includes the following: a) The Account Holder’s nationality or residence status; The Account Holder’s residence address and mailing address currently on file with the Re- porting New Zealand Financial Institution; The Account Holder’s telephone number(s) cur- rently on file, if any, with the Reporting New Zealand Financial Institution; b) c) 4.
5. d) Whether there are standing instructions to trans- fer funds in the account to another account (in- cluding an account at another branch of the Re- porting New Zealand Financial Institution or an- other Financial Institution); e) Whether there is a current “in-care-of” address or “hold mail” address for the Account Holder; and Whether there is any power of attorney or signa- tory authority for the account.

f) Relationship Manager Inquiry for Actual Know- ledge.
In addition to the electronic and paper record searches described above, the Reporting New Zealand Financial Institution must treat as a U.S. Reportable Account any High Value Account assigned to a rela- tionship manager (including any Financial Accounts aggregated with such High Value Account) if the relationship manager has actual knowledge that the Account Holder is a Specified U.S.

Person.

Effect of Finding U.S. Indicia.


a) If none of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the en- hanced review of High Value Accounts described above, and the account is not identified as held by a Specified U.S.
Person in subparagraph D(4) of this section, then no further action is required until there is a change in circumstances that re- 35 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued c) b) sults in one or more U.S. indicia being associated with the account.
If any of the U.S. indicia listed in subpara- graph B(1) of this section are discovered in the enhanced review of High Value Accounts de- scribed above, or if there is a subsequent change in circumstances that results in one or more U.S. indicia being associated with the account, then the Reporting New Zealand Financial Institu- tion must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account.
Except for Depository Accounts described in subparagraph A(4) of this section, any Preexist- ing Individual Account that has been identified as a U.S. Reportable Account under this section shall be treated as a U.S. Reportable Account in all subsequent years, unless the Account Holder ceases to be a Specified U.S.

Person.

Additional Procedures Applicable to High Value Accounts.
If a Preexisting Individual Account is a High Value Ac- 1. count as of June 30, 2014, the Reporting New Zealand Financial Institution must complete the enhanced re- view procedures described in paragraph D of this sec- tion with respect to such account by June 30, 2015.
If based on this review such account is identified as a U.S. Reportable Account on or before December 31, 2014, the Reporting New Zealand Financial Institution must report the required information about such account with respect to 2014 in the first report on the account and on an annual basis thereafter.
In the case of an account identified as a U.S. Reportable Account after December 31, 2014 and on or before June 30, 2015, the Report- ing New Zealand Financial Institution is not required to report information about such account with respect to E. 36 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule 2.

3.

4.

5.

Annex I—continued 2014, but must report information about the account on an annual basis thereafter.
If a Preexisting Individual Account is not a High Value Account as of June 30, 2014, but becomes a High Value Account as of the last day of 2015 or any subsequent calendar year, the Reporting New Zealand Financial In- stitution must complete the enhanced review proced- ures described in paragraph D of this section with re- spect to such account within six months after the last day of the calendar year in which the account becomes a High Value Account.
If based on this review such account is identified as a U.S. Reportable Account, the Reporting New Zealand Financial Institution must re- port the required information about such account with respect to the year in which it is identified as a U.S. Reportable Account and subsequent years on an annual basis, unless the Account Holder ceases to be a Speci- fied U.S.

Person.
Person.

Once a Reporting New Zealand Financial Institution ap- plies the enhanced review procedures described in para- graph D of this section to a High Value Account, the Reporting New Zealand Financial Institution is not re- quired to re-apply such procedures, other than the re- lationship manager inquiry described in subparagraph D(4) of this section, to the same High Value Account in any subsequent year.
If there is a change of circumstances with respect to a High Value Account that results in one or more U.S. in- dicia described in subparagraph B(1) of this section be- ing associated with the account, then the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account unless it elects to apply sub- paragraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that ac- count.
A Reporting New Zealand Financial Institution must implement procedures to ensure that a relationship man- ager identifies any change in circumstances of an ac- 37 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 F. Annex I—continued count.
For example, if a relationship manager is noti- fied that the Account Holder has a new mailing address in the United States, the Reporting New Zealand Finan- cial Institution is required to treat the new address as a change in circumstances and, if it elects to apply sub- paragraph B(4) of this section, is required to obtain the appropriate documentation from the Account Holder.

Preexisting Individual Accounts That Have Been Docu- mented for Certain Other Purposes.
A Reporting New Zealand Financial Institution that has pre- viously obtained documentation from an Account Holder to establish the Account Holder’s status as neither a U.S. citi- zen nor a U.S. resident in order to meet its obligations under a qualified intermediary, withholding foreign partnership, or withholding foreign trust agreement with the IRS, or to fulfill its obligations under chapter 61 of Title 26 of the United States Code, is not required to perform the procedures described in subparagraph B(1) of this section with respect to Lower Value Accounts or subparagraphs D(1) through D(3) of this section with respect to High Value Accounts.
III.

New Individual Accounts.

The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts among Financial Accounts held by indi- viduals and opened on or after July 1, 2014 (“New Individual Ac- counts”).

A.

Accounts Not Required to Be Reviewed, Identified, or Re- ported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either with respect to all New Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in New Zealand provide for such an election, the following New Individual Ac- counts are not required to be reviewed, identified, or reported as U.S. Reportable Accounts: 38 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued B.
1.

2.

A Depository Account unless the account balance ex- ceeds $50,000 at the end of any calendar year or other appropriate reporting period.

A Cash Value Insurance Contract unless the Cash Value exceeds $50,000 at the end of any calendar year or other appropriate reporting period.

Other New Individual Accounts.
With respect to New Individual Accounts not described in paragraph A of this section, upon account opening (or within 90 days after the end of the calendar year in which the ac- count ceases to be described in paragraph A of this section), the Reporting New Zealand Financial Institution must obtain a self-certification, which may be part of the account open- ing documentation, that allows the Reporting New Zealand Fi- nancial Institution to determine whether the Account Holder is resident in the United States for tax purposes (for this purpose, a U.S. citizen is considered to be resident in the United States for tax purposes, even if the Account Holder is also a tax resi- dent of another jurisdiction) and confirm the reasonableness of such self-certification based on the information obtained by the Reporting New Zealand Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures.
1.

If the self-certification establishes that the Account Holder is resident in the United States for tax purposes, the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account and obtain a self-certification that includes the Account Holder’s U.S. TIN (which may be an IRS Form W-9 or other similar agreed form).
If there is a change of circumstances with respect to a New Individual Account that causes the Reporting New Zealand Financial Institution to know, or have rea- son to know, that the original self-certification is incor- rect or unreliable, the Reporting New Zealand Financial Institution cannot rely on the original self-certification and must obtain a valid self-certification that establishes 2.
39 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued whether the Account Holder is a U.S. citizen or resident for U.S. tax purposes.

If the Reporting New Zealand Fi- nancial Institution is unable to obtain a valid self-certifi- cation, the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account.

Preexisting Entity Accounts.

IV.


The following rules and procedures apply for purposes of identify- ing U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions among Preexisting Accounts held by Entities (“Preexisting Entity Accounts”).

A.

Entity Accounts Not Required to Be Reviewed, Identified or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either with respect to all Preexisting Entity Ac- counts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in New Zealand provide for such an election, a Preexisting Entity Ac- count with an account balance or value that does not exceed $250,000 as of June 30, 2014, is not required to be reviewed, identified, or reported as a U.S. Reportable Account until the account balance or value exceeds $1,000,000.
Entity Accounts Subject to Review.

A Preexisting Entity Account that has an account balance or value that exceeds $250,000 as of June 30, 2014, and a Pre- existing Entity Account that does not exceed $250,000 as of June 30, 2014 but the account balance or value of which ex- ceeds $1,000,000 as of the last day of 2015 or any subsequent calendar year, must be reviewed in accordance with the pro- cedures set forth in paragraph D of this section.

Entity Accounts With Respect to Which Reporting Is Re- quired.
With respect to Preexisting Entity Accounts described in para- graph B of this section, only accounts that are held by one or more Entities that are Specified U.S.

Persons, or by Passive NFFEs with one or more Controlling Persons who are U.S. B. C. 40 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued D. citizens or residents shall be treated as U.S. Reportable Ac- counts.
In addition, accounts held by Nonparticipating Finan- cial Institutions shall be treated as accounts for which aggre- gate payments as described in subparagraph 1(b) of Article 4 of the Agreement are reported to the New Zealand Competent Authority.

Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required.
For Preexisting Entity Accounts described in paragraph B of this section, the Reporting New Zealand Financial Institution must apply the following review procedures to determine whether the account is held by one or more Specified U.S.

Persons, by Passive NFFEs with one or more Controlling Persons who are U.S. citizens or residents, or by Nonpartic- ipating Financial Institutions: 1.

Determine Whether the Entity Is a Specified U.S.

Person.
Person.

a) b) Review information maintained for regulatory or customer relationship purposes (including infor- mation collected pursuant to AML/KYC Proced- ures) to determine whether the information indi- cates that the Account Holder is a U.S.

Person.

For this purpose, information indicating that the Account Holder is a U.S.

Person includes a U.S. place of incorporation or organization, or a U.S. address.

If the information indicates that the Account the Reporting New Holder is a U.S.
Person, Zealand Financial Institution must treat the ac- count as a U.S. Reportable Account unless it obtains a self-certification from the Account Holder (which may be on an IRS Form W-8 or W-9, or a similar agreed form), or reasonably de- termines based on information in its possession or that is publicly available, that the Account Holder is not a Specified U.S.

Person.

41 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued 2.

3.
3.

Determine Whether a Non-U.S.

Entity Is a Financial Institution.

a) Review information maintained for regulatory or customer relationship purposes (including infor- mation collected pursuant to AML/KYC Proced- ures) to determine whether the information indi- cates that the Account Holder is a Financial In- stitution.
If the information indicates that the Account Holder is a Financial Institution, or the Report- ing New Zealand Financial Institution verifies the Account Holder’s Global Intermediary Iden- tification Number on the published IRS FFI list, then the account is not a U.S. Reportable Account.

b) Determine Whether a Financial Institution Is a Nonparticipating Financial Institution Payments to Which Are Subject to Aggregate Reporting Under Subparagraph 1(b) of Article 4 of the Agreement.
a) Subject to subparagraph D(3)(b) of this section, a Reporting New Zealand Financial Institution may determine that the Account Holder is a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution if the Reporting New Zealand Financial Institution reasonably determines that the Account Holder has such sta- tus on the basis of the Account Holder’s Global Intermediary Identification Number on the pub- lished IRS FFI list or other information that is publicly available or in the possession of the Reporting New Zealand Financial Institution, as applicable.
In such case, no further review, iden- tification, or reporting is required with respect to the account.
If the Account Holder is a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution treated by the IRS as a Nonpartici- pating Financial Institution, then the account is b) 42 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule c) Annex I—continued not a U.S. Reportable Account, but payments to the Account Holder must be reported as contem- plated in subparagraph 1(b) of Article 4 of the Agreement.
If the Account Holder is not a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution, then the Reporting New Zealand Financial Institution must treat the Ac- count Holder as a Nonparticipating Financial Institution payments to which are reportable under subparagraph 1(b) of Article 4 of the Agreement, unless the Reporting New Zealand Financial Institution: (1) Obtains a self-certification (which may be on an IRS Form W-8 or similar agreed form) from the Account Holder that it is a certified deemed-compliant FFI, or an ex- empt beneficial owner, as those terms are defined in relevant U.S. Treasury Regula- tions; or In the case of a participating FFI or regis- tered deemed-compliant FFI, verifies the Account Holder’s Global Intermediary Identification Number on the published IRS FFI list.
(2) 4.

Determine Whether an Account Held by an NFFE Is a U.S. Reportable Account.

With respect to an Ac- count Holder of a Preexisting Entity Account that is not identified as either a U.S.

Person or a Financial Institu- tion, the Reporting New Zealand Financial Institution must identify (i) whether the Account Holder has Con- trolling Persons, (ii) whether the Account Holder is a Passive NFFE, and (iii) whether any of the Control- ling Persons of the Account Holder is a U.S. citizen or resident.
In making these determinations the Report- ing New Zealand Financial Institution must follow the guidance in subparagraphs D(4)(a) through D(4)(d) of 43 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued this section in the order most appropriate under the cir- cumstances.
a) For purposes of determining the Controlling Persons of an Account Holder, a Reporting New Zealand Financial Institution may rely on in- formation collected and maintained pursuant to AML/KYC Procedures.
For purposes of determining whether the Ac- count Holder is a Passive NFFE, the Reporting New Zealand Financial Institution must obtain a self-certification (which may be on an IRS Form W-8 or W-9, or on a similar agreed form) from the Account Holder to establish its status, unless it has information in its possession or that is pub- licly available, based on which it can reasonably determine that the Account Holder is an Active NFFE.
For purposes of determining whether a Control- ling Person of a Passive NFFE is a U.S. citizen or resident for tax purposes, a Reporting New Zealand Financial Institution may rely on: (1) Information collected and maintained pur- suant to AML/KYC Procedures in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance or value that does not exceed $1,000,000; or (2) A self-certification (which may be on an IRS Form W-8 or W-9, or on a similar agreed form) from the Account Holder or such Controlling Person in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance or value that exceeds $1,000,000.
If any Controlling Person of a Passive NFFE is a U.S. citizen or resident, the account shall be treated as a U.S. Reportable Account.

b) c) d) 44 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued E. Timing of Review and Additional Procedures Applicable to Preexisting Entity Accounts.

1.

2.
1.

2.

3. Review of Preexisting Entity Accounts with an account balance or value that exceeds $250,000 as of June 30, 2014 must be completed by June 30, 2016. Review of Preexisting Entity Accounts with an account balance or value that does not exceed $250,000 as of June 30, 2014, but exceeds $1,000,000 as of Decem- ber 31 of 2015 or any subsequent year, must be com- pleted within six months after the last day of the calen- dar year in which the account balance or value exceeds $1,000,000.
If there is a change of circumstances with respect to a Preexisting Entity Account that causes the Reporting New Zealand Financial Institution to know, or have rea- son to know, that the self-certification or other docu- mentation associated with an account is incorrect or un- reliable, the Reporting New Zealand Financial Institu- tion must redetermine the status of the account in ac- cordance with the procedures set forth in paragraph D of this section.

New Entity Accounts.


V. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Fi- nancial Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 (“New Entity Accounts”).

A.

Entity Accounts Not Required to Be Reviewed, Identified or Reported.
Unless the Reporting New Zealand Financial Institution elects otherwise, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in New Zealand provide for such election, a credit card account or a revolving credit facility treated as a New Entity Account is not required to be reviewed, identified, or reported, provided that the Reporting New Zealand Financial Institution maintaining 45 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued such account implements policies and procedures to prevent an account balance owed to the Account Holder that exceeds $50,000.
Other New Entity Accounts.

With respect to New Entity Accounts not described in para- graph A of this section, the Reporting New Zealand Finan- cial Institution must determine whether the Account Holder is: (i) a Specified U.S.
Person; (ii) a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an ex- empt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active NFFE or Passive NFFE.

1.
Subject to subparagraph B(2) of this section, a Report- ing New Zealand Financial Institution may determine that the Account Holder is an Active NFFE, a New Zealand Financial Institution, or other Partner Jurisdic- tion Financial Institution if the Reporting New Zealand Financial Institution reasonably determines that the Ac- count Holder has such status on the basis of the Account Holder’s Global Intermediary Identification Number or other information that is publicly available or in the pos- session of the Reporting New Zealand Financial Insti- tution, as applicable.
If the Account Holder is a New Zealand Financial Insti- tution or other Partner Jurisdiction Financial Institution treated by the IRS as a Nonparticipating Financial In- stitution, then the account is not a U.S. Reportable Ac- count, but payments to the Account Holder must be re- ported as contemplated in subparagraph 1(b) of Article 4 of the Agreement.
In all other cases, a Reporting New Zealand Finan- cial Institution must obtain a self-certification from the Account Holder to establish the Account Holder’s sta- tus.

Based on the self-certification, the following rules apply: 2.

3.

B.

46 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule a) b) c) d) Annex I—continued If the Account Holder is a Specified U.S.

Person, the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Ac- count.
If the Account Holder is a Passive NFFE, the Re- porting New Zealand Financial Institution must identify the Controlling Persons as determined under AML/KYC Procedures, and must deter- mine whether any such person is a U.S. citizen or resident on the basis of a self-certification from the Account Holder or such person.

If any such person is a U.S. citizen or resident, the Reporting New Zealand Financial Institution must treat the account as a U.S. Reportable Account.

If the Account Holder is: (i) a U.S.


Person that is not a Specified U.S.
Person; (ii) subject to sub- paragraph B(3)(d) of this section, a New Zealand Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive NFFE none of the Controlling Per- sons of which is a U.S. citizen or resident, then the account is not a U.S. Reportable Account, and no reporting is required with respect to the ac- count.
If the Account Holder is a Nonparticipating Fi- nancial Institution (including a New Zealand Fi- nancial Institution or other Partner Jurisdiction Financial Institution treated by the IRS as a Non- participating Financial Institution), then the ac- count is not a U.S. Reportable Account, but pay- ments to the Account Holder must be reported as contemplated in subparagraph 1(b) of Article 4 of the Agreement.
47 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued Special Rules and Definitions.

VI.

The following additional rules and definitions apply in implementing the due diligence procedures described above: A.

Reliance on Self-Certifications and Documentary Evi- dence.
A Reporting New Zealand Financial Institution may not rely on a self-certification or documentary evidence if the Report- ing New Zealand Financial Institution knows or has reason to know that the self-certification or documentary evidence is in- correct or unreliable.

Definitions.

The following definitions apply for purposes of this Annex I.

“AML/KYC Procedures” AML/KYC Procedures.


1. means the customer due diligence procedures of a Reporting New Zealand Financial Institution pursuant to the anti-money laundering or similar requirements of New Zealand to which such Reporting New Zealand Financial Institution is subject.

NFFE.

An “NFFE” means any Non-U.S.

Entity that is not an FFI as defined in relevant U.S. Treasury Regula- tions or is an Entity described in subparagraph B(4)(j) of this section, and also includes any Non-U.S.
Entity that is established in New Zealand or another Partner Jurisdiction and that is not a Financial Institution.

Passive NFFE.

A “Passive NFFE” means any NFFE that is not (i) an Active NFFE, or (ii) a withholding for- eign partnership or withholding foreign trust pursuant to relevant U.S. Treasury Regulations.

Active NFFE.

An “Active NFFE” means any NFFE that meets any of the following criteria: a) 4.

2.

3.
2.

3.

Less than 50 percent of the NFFE’s gross income for the preceding calendar year or other appropri- ate reporting period is passive income and less than 50 percent of the assets held by the NFFE during the preceding calendar year or other ap- propriate reporting period are assets that produce or are held for the production of passive income; B.
48 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule b) c) d) e) f) Annex I—continued The stock of the NFFE is regularly traded on an established securities market or the NFFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market; The NFFE is organized in a U.S.

Territory and all of the owners of the payee are bona fide residents of that U.S.
Territory; The NFFE is a government (other than the U.S. Government), a political subdivision of such government (which, for the avoidance of doubt, includes a state, province, county, region or municipality), or a public body performing a function of such government or a political subdivision thereof, a government of a U.S. Ter- ritory, an international organization, a non-U.S. central bank of issue, or an Entity wholly owned by one or more of the foregoing; Substantially all of the activities of the NFFE consist of holding (in whole or in part) the out- standing stock of, or providing financing and ser- vices to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution, except that an NFFE shall not qualify for this status if the NFFE functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as cap- ital assets for investment purposes; The NFFE is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a Financial Institution, provided that the NFFE shall not qualify for this exception after the date that is 24 months after the date of the initial organization of the NFFE; 49 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued g) h) i) j) The NFFE was not a Financial Institution in the past five years, and is in the process of liquidat- ing its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a Financial Institution; The NFFE primarily engages in financing and hedging transactions with or for Related Entities that are not Financial Institutions, and does not provide financing or hedging services to any En- tity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of a Finan- cial Institution; The NFFE is an “excepted NFFE” as described in relevant U.S. Treasury Regulations; or The NFFE meets all of the following require- ments: i.
It is established and operated in its jur- isdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its jurisdiction of residence and it is a pro- fessional organization, business league, chamber of commerce, labor organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare; It is exempt from income tax in its juris- diction of residence; It has no shareholders or members who have a proprietary or beneficial interest in its income or assets; The applicable laws of the NFFE’s jur- isdiction of residence or the NFFE’s for- mation documents do not permit any in- come or assets of the NFFE to be dis- ii.
iii.

iv.
50 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued tributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFFE’s charitable activities, or as pay- ment of reasonable compensation for ser- vices rendered, or as payment representing the fair market value of property which the NFFE has purchased; and The applicable laws of the NFFE’s jur- isdiction of residence or the NFFE’s for- mation documents require that, upon the NFFE’s liquidation or dissolution, all of its assets be distributed to a governmental en- tity or other non-profit organization, or es- cheat to the government of the NFFE’s jur- isdiction of residence or any political sub- division thereof.
v. C. 5.

Preexisting Account.

A “Preexisting Account” means a Financial Account maintained by a Reporting Finan- cial Institution as of June 30, 2014.

Account Balance Aggregation and Currency Translation Rules.

1.

Aggregation of Individual Accounts.
For purposes of determining the aggregate balance or value of Finan- cial Accounts held by an individual, a Reporting New Zealand Financial Institution is required to aggregate all Financial Accounts maintained by the Reporting New Zealand Financial Institution, or by a Related Entity, but only to the extent that the Reporting New Zealand Fi- nancial Institution’s computerized systems link the Fi- nancial Accounts by reference to a data element such as client number or taxpayer identification number, and al- low account balances or values to be aggregated.
Each holder of a jointly held Financial Account shall be at- tributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggre- gation requirements described in this paragraph 1.

51 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 2.

3.

4.

Annex I—continued Aggregation of Entity Accounts.
For purposes of de- termining the aggregate balance or value of Financial Accounts held by an Entity, a Reporting New Zealand Financial Institution is required to take into account all Financial Accounts that are maintained by the Re- porting New Zealand Financial Institution, or by a Re- lated Entity, but only to the extent that the Reporting New Zealand Financial Institution’s computerized sys- tems link the Financial Accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be ag- gregated.
Special Aggregation Rule Applicable to Relationship Managers.
For purposes of determining the aggregate balance or value of Financial Accounts held by a per- son to determine whether a Financial Account is a High Value Account, a Reporting New Zealand Financial In- stitution is also required, in the case of any Financial Accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, con- trolled, or established (other than in a fiduciary cap- acity) by the same person, to aggregate all such ac- counts.

Currency Translation Rule.


For purposes of deter- mining the balance or value of Financial Accounts de- nominated in a currency other than the U.S. dollar, a Reporting New Zealand Financial Institution must con- vert the U.S. dollar threshold amounts described in this Annex I into such currency using a published spot rate determined as of the last day of the calendar year pre- ceding the year in which the Reporting New Zealand Fi- nancial Institution is determining the balance or value.
Documentary Evidence.

For purposes of this Annex I, acceptable documentary evi- dence includes any of the following: 1.

A certificate of residence issued by an authorized gov- ernment body (for example, a government or agency D. 52 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex I—continued thereof, or a municipality) of the jurisdiction in which the payee claims to be a resident.

2.
2.

With respect to an individual, any valid identification issued by an authorized government body (for example, a government or agency thereof, or a municipality), that includes the individual’s name and is typically used for identification purposes.

3.
3.

With respect to an Entity, any official documentation issued by an authorized government body (for example, a government or agency thereof, or a municipality) that includes the name of the Entity and either the address of its principal office in the jurisdiction (or U.S.

Territory) in which it claims to be a resident or the jurisdiction (or U.S.

Territory) in which the Entity was incorporated or organized.

4.
4.

With respect to a Financial Account maintained in a jurisdiction with anti-money laundering rules that have been approved by the IRS in connection with a QI agreement (as described in relevant U.S. Treasury Regulations), any of the documents, other than a Form W-8 or W-9, referenced in the jurisdiction’s attach- ment to the QI agreement for identifying individuals or Entities.

report, Any financial statement, bankruptcy filing, or U.S. Securities and Exchange Commission report.

third-party credit 5.


E. Alternative Procedures for Financial Accounts Held by In- dividual Beneficiaries of a Cash Value Insurance Contract.

A Reporting New Zealand Financial Institution may presume that an individual beneficiary (other than the owner) of a Cash Value Insurance Contract receiving a death benefit is not a Specified U.S.
Person and may treat such Financial Account as other than a U.S. Reportable Account unless the Reporting New Zealand Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Specified U.S.

Person.

A Reporting New Zealand Financial Institution has reason to know that a beneficiary of a Cash Value Insurance Contract is 53 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex I—continued a Specified U.S.
Person if the information collected by the Re- porting New Zealand Financial Institution and associated with the beneficiary contains U.S. indicia as described in subpara- graph (B)(1) of section II of this Annex I.

If a Reporting New Zealand Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Specified U.S.

Person, the Reporting New Zealand Financial Institution must follow the procedures in subparagraph B(3) of section II of this Annex I.

Reliance on Third Parties.


Regardless of whether an election is made under paragraph C of section I of this Annex I, New Zealand may permit Report- ing New Zealand Financial Institutions to rely on due diligence procedures performed by third parties, to the extent provided in relevant U.S. Treasury Regulations.
F. Annex II Non-Reporting New Zealand Financial Institutions and Accounts General The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFIs, as the case may be, and the following accounts are excluded from the definition of Financial Accounts.

Exempt Beneficial Owners other than Funds.

I.


The following Entities shall be treated as Non-Reporting New Zealand Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution.

Governmental Entities.

A.


The government of New Zealand, any political subdivision of New Zealand (which, for the avoidance of doubt, includes a state, province, county, region, or municipality), or any wholly owned agency or instrumentality of New Zealand or any one 54 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued or more of the foregoing (each, a “New Zealand Governmen- tal Entity”).
This category is comprised of the integral parts, controlled entities, and political subdivisions of New Zealand.

An integral part of New Zealand means any person, 1. organization, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a gov- erning authority of New Zealand.

The net earnings of the governing authority must be credited to its own ac- count or to other accounts of New Zealand, with no por- tion inuring to the benefit of any private person.
An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity.
A controlled entity means an Entity that is separate in form from New Zealand or that otherwise constitutes a separate juridical entity, provided that: a) 2. c) b) The Entity is wholly owned and controlled by one or more New Zealand Governmental Entities directly or through one or more controlled en- tities; The Entity’s net earnings are credited to its own account or to the accounts of one or more New Zealand Governmental Entities, with no portion of its income inuring to the benefit of any private person; and The Entity’s assets vest in one or more New Zealand Governmental Entities upon dissolution.
Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a gov- ernmental program, and the program activities are per- formed for the general public with respect to the com- mon welfare or relate to the administration of some phase of government.
Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business, such as a commercial banking business, that provides financial services to private persons.

55 3.

Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued 4.
For the avoidance of doubt, the following shall be treated as Non-Reporting New Zealand Financial Insti- tutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code: a) b) c) d) e) f) The New Zealand Superannuation Fund; The Guardians of New Zealand Superannuation; The Accident Compensation Corporation; The Earthquake Commission; The Māori Trustee; New Zealand Local Government Funding Agency Limited; The Reserve Bank of New Zealand as per section 5, and all branches and agencies as per section 6, of the Reserve Bank of New Zealand Act 1989. g) B.
International Organization.

Any international organization or wholly owned agency or in- strumentality thereof.

This category includes any intergovern- mental organization (including a supranational organization) (1) that is comprised primarily of non-U.S. governments; (2) that has in effect a headquarters agreement with New Zealand; and (3) the income of which does not inure to the benefit of pri- vate persons.

C. Māori Authorities.


Māori Authorities as defined in section HF 1(1) of the Income Tax Act 2007.

Funds that Qualify as Exempt Beneficial Owners.

II.

The following Entities shall be treated as Non-Reporting New Zealand Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code.

A. Treaty-Qualified Retirement Fund.


Any pension fund established in New Zealand and described in Article 3(1)(l) (General Definitions) of the Convention, pro- vided that the pension fund is entitled to benefits under the 56 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued B.
Convention on income that it derives from sources within the United States (or would be entitled to such benefits if it derived any such income) as a resident of New Zealand that satisfies any applicable limitation on benefits requirement.

Broad Participation Retirement Fund.


A fund established in New Zealand to provide retirement, dis- ability, or death benefits, or any combination thereof, to bene- ficiaries that are current or former employees (or persons des- ignated by such employees) of one or more employers in con- sideration for services rendered, provided that the fund: 1.
Does not have a single beneficiary with a right to more than five percent of the fund’s assets; Is subject to government regulation and provides annual information reporting about its beneficiaries to the rele- vant tax authorities in New Zealand; and Satisfies at least one of the following requirements: a) 2.
3. b) c) The fund is generally exempt from tax in New Zealand on investment income under the laws of New Zealand due to its status as a retirement or pension plan; The fund receives at least 50 percent of its total contributions (other than transfers of assets from other plans described in paragraphs A through D of this section or from retirement and pension ac- counts described in subparagraph B(1) of section V of this Annex II) from the sponsoring employ- ers; Distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in paragraphs A through D of this section or retirement and pension accounts described in subparagraph B(1) of section V of this Annex II), or penalties apply to distribu- tions or withdrawals made before such specified events; or 57 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued d) (other Contributions than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed $50,000 an- nually, applying the rules set forth in Annex I for account aggregation and currency translation.
Narrow Participation Retirement Fund.

A fund established in New Zealand to provide retirement, dis- ability, or death benefits to beneficiaries that are current or for- mer employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1.

2.
The fund has fewer than 50 participants; The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; The employee and employer contributions to the fund (other than transfers of assets from treaty-qualified re- tirement funds described in paragraph A of this section or retirement and pension accounts described in sub- paragraph B(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; Participants that are not residents of New Zealand are not entitled to more than 20 percent of the fund’s assets; and The fund is subject to government regulation and pro- vides annual information reporting about its beneficiar- ies to the relevant tax authorities in New Zealand.
3.

4.

5.

Pension Fund of an Exempt Beneficial Owner.

A fund established in New Zealand by an exempt beneficial owner to provide retirement, disability, or death benefits to beneficiaries or participants that are current or former employ- ees of the exempt beneficial owner (or persons designated by such employees), or that are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed for the exempt beneficial owner.
C. D. 58 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued E. Investment Entity Wholly Owned by Exempt Beneficial Owners.
An Entity that is a New Zealand Financial Institution solely because it is an Investment Entity, provided that each direct holder of an Equity Interest in the Entity is an exempt bene- ficial owner, and each direct holder of a debt interest in such Entity is either a Depository Institution (with respect to a loan made to such Entity) or an exempt beneficial owner.

III.

Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant FFIs.
The following Financial Institutions are Non-Reporting New Zealand Financial Institutions that shall be treated as deemed-com- pliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code.

A.

Financial Institutions with a Local Client Base.

A New Zealand Financial Institution satisfying the following requirements: 1.

2.

3.
2.

3.

The Financial Institution must be licensed or regulated as a financial institution under the laws of New Zealand; The Financial Institution must have no fixed place of business outside of New Zealand.

For this purpose, a fixed place of business does not include a location that is not advertised to the public and from which the Fi- nancial Institution performs solely administrative sup- port functions; The Financial Institution must not solicit customers or Account Holders outside of New Zealand.
For this pur- pose, a Financial Institution shall not be considered to have solicited customers or Account Holders outside of New Zealand merely because the Financial Institution (a) operates a website, provided that the website does not specifically indicate that the Financial Institution provides Financial Accounts or services to non-resi- dents, and does not otherwise target or solicit U.S. cus- tomers or Account Holders, or (b) advertises in print 59 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued 4.
5.
6. media or on a radio or television station that is dis- tributed or aired primarily within New Zealand but is also incidentally distributed or aired in other countries, provided that the advertisement does not specifically indicate that the Financial Institution provides Finan- cial Accounts or services to non-residents, and does not otherwise target or solicit U.S. customers or Account Holders; The Financial Institution must be required under the laws of New Zealand to identify resident Account Hold- ers for the purposes of either information reporting or withholding of tax with respect to Financial Accounts held by residents or for the purposes of satisfying New Zealand’s anti-money laundering due diligence require- ments; At least 98 percent of the Financial Accounts by value maintained by the Financial Institution, as of the last day of the preceding calendar year or other appropriate reporting period, must be held by residents (including residents that are Entities) of New Zealand or Australia; Beginning on or before July 1, 2014, the Financial In- stitution must have policies and procedures, consistent with those set forth in Annex I, to prevent the Finan- cial Institution from providing a Financial Account to any Nonparticipating Financial Institution and to moni- tor whether the Financial Institution opens or maintains a Financial Account for (i) any Specified U.S.
Person who is not a resident of New Zealand (including a U.S.

Person that was a resident of New Zealand when the account was opened but subsequently ceases to be a resident of New Zealand), or any Passive NFFE with one or more Controlling Persons who are U.S. residents or U.S. citizens who are not residents of New Zealand; (ii) 7.

Such policies and procedures must provide that if any Financial Account held by a Specified U.S.
Person who is not a resident of New Zealand or by a Passive NFFE 60 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued with Controlling Persons who are U.S. residents or U.S. citizens who are not residents of New Zealand is identi- fied, the Financial Institution must report such Financial Account as would be required if the Financial Institu- tion were a Reporting New Zealand Financial Institu- tion (including by following the applicable registration requirements on the IRS FATCA registration website) or close such Financial Account; 8.
With respect to a Preexisting Account held by an indi- vidual who is not a resident of New Zealand or by an Entity, the Financial Institution must review those Pre- existing Accounts in accordance with the procedures set forth in Annex I applicable to Preexisting Accounts to identify any U.S. Reportable Account or Financial Ac- count held by a Nonparticipating Financial Institution, and must report such Financial Account as would be required if the Financial Institution were a Reporting New Zealand Financial Institution (including by fol- lowing the applicable registration requirements on the IRS FATCA registration website) or close such Finan- cial Account; Each Related Entity of the Financial Institution that is a Financial Institution must be incorporated or organized in New Zealand and, with the exception of any Related Entity that is a retirement fund described in paragraphs A through D of section II of this Annex II, satisfy the requirements set forth in this paragraph A; and The Financial Institution must not have policies or prac- tices that discriminate against opening or maintaining Financial Accounts for individuals who are Specified U.S.
Persons and residents of New Zealand.

10.

9.

B.

Certain Non-Registering Local Banks.

A New Zealand Financial Institution satisfying the following requirements: 1.

The Financial Institution operates solely as (and is li- censed or regulated under the laws of New Zealand as) (a) a bank (or a Financial Institution offering compar- 61 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 2.

3.

4.

5.
Annex II—continued able financial services) or (b) a credit union or similar cooperative credit organization that is operated without profit; The Financial Institution’s business consists primarily of receiving deposits from and making loans to, with respect to a bank, unrelated retail customers and, with respect to a credit union or similar cooperative credit organization, members, provided that no member has a greater than five percent interest in such credit union or cooperative credit organization; The Financial Institution satisfies the requirements set forth in subparagraphs A(2) and A(3) of this section provided that, in addition to the limitations on the web- site described in subparagraph A(3) of this section, the website does not permit the opening of a Financial Ac- count; The Financial Institution does not have more than $175 million (as of the last day of the preceding calendar year or other appropriate reporting period) in assets on its balance sheet, and the Financial Institution and any Re- lated Entities, taken together, do not have more than $500 million (as of the last day of the preceding calen- dar year or other appropriate reporting period) in total assets on their consolidated or combined balance sheets; and Any Related Entity must be incorporated or organized in New Zealand, and any Related Entity that is a Fi- nancial Institution, with the exception of any Related Entity that is a retirement fund described in paragraphs A through D of section II of this Annex II or a Finan- cial Institution with only low-value accounts described in paragraph C of this section, must satisfy the require- ments set forth in this paragraph B.
Financial Institution with Only Low-Value Accounts.

A New Zealand Financial Institution satisfying the following requirements: 1.

The Financial Institution is not an Investment Entity; C. 62 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued 2.

3.
3.

No Financial Account maintained by the Financial In- stitution or any Related Entity has a balance or value in excess of $50,000, applying the rules set forth in Annex I for account aggregation and currency translation; and The Financial Institution does not have more than $50 million in assets on its balance sheet, and the Financial Institution and any Related Entities, taken together, do not have more than $50 million in total assets on their consolidated or combined balance sheets.
D. Qualified Credit Card Issuer.

A New Zealand Financial Institution satisfying the following requirements: 1.

2.
The Financial Institution is a Financial Institution solely because it is an issuer of credit cards that accepts de- posits only when a customer makes a payment in excess of a balance due with respect to the card and the over- payment is not immediately returned to the customer; and Beginning on or before July 1, 2014, the Financial Insti- tution implements policies and procedures to either pre- vent a customer deposit in excess of $50,000, or to en- sure that any customer deposit in excess of $50,000, in each case applying the rules set forth in Annex I for ac- count aggregation and currency translation, is refunded to the customer within 60 days.
For this purpose, a cus- tomer deposit does not refer to credit balances to the extent of disputed charges but does include credit bal- ances resulting from merchandise returns.

IV.

Investment Entities that Qualify as Deemed-Compliant FFIs and Other Special Rules.

The Financial Institutions described in paragraphs A through E of this section are Non-Reporting New Zealand Financial Institutions that shall be treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code.
In addition, paragraph F of this section provides special rules applicable to an Investment Entity.

63 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued A.

B. Trustee-Documented Trust.


A trust established under the laws of New Zealand to the ex- tent that the trustee of the trust is a Reporting U.S. Financial Institution, Reporting Model 1 FFI, or Participating FFI and reports all information required to be reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust.

Sponsored Investment Entity and Controlled Foreign Cor- poration.
A Financial Institution described in subparagraph B(1) or B(2) of this section having a sponsoring entity that complies with the requirements of subparagraph B(3) of this section.

1.
1.

A Financial Institution is a sponsored investment en- tity if (a) it is an Investment Entity established in New Zealand that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pur- suant to relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial Institution to act as a sponsoring entity for the Financial Institution.
A Financial Institution is a sponsored controlled for- eign corporation if (a) the Financial Institution is a con- trolled foreign corporation1 organized under the laws of New Zealand that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the Financial Institution is wholly owned, directly or in- directly, by a Reporting U.S. Financial Institution that agrees to act, or requires an affiliate of the Financial 2.
1 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such corporation, is owned, or is considered as owned, by “United States share- holders” on any day during the taxable year of such foreign corporation.
The term a “United States shareholder” means, with respect to any foreign corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation.
64 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued Institution to act, as a sponsoring entity for the Finan- cial Institution; and (c) the Financial Institution shares a common electronic account system with the sponsor- ing entity that enables the sponsoring entity to identify all Account Holders and payees of the Financial Insti- tution and to access all account and customer informa- tion maintained by the Financial Institution including, but not limited to, customer identification information, customer documentation, account balance, and all pay- ments made to the Account Holder or payee.
The sponsoring entity complies with the following re- quirements: a) 3. b) c) d) e) The sponsoring entity is authorized to act on be- half of the Financial Institution (such as a fund manager, trustee, corporate director, or managing partner) to fulfill applicable registration require- ments on the IRS FATCA registration website; The sponsoring entity has registered as a sponsor- ing entity with the IRS on the IRS FATCA regis- tration website; If the sponsoring entity identifies any U.S. Re- portable Accounts with respect to the Financial Institution, the sponsoring entity registers the Fi- nancial Institution pursuant to applicable regis- tration requirements on the IRS FATCA registra- tion website on or before the later of December 31, 2015 and the date that is 90 days after such a U.S. Reportable Account is first identified; The sponsoring entity agrees to perform, on be- half of the Financial Institution, all due diligence, withholding, reporting, and other requirements that the Financial Institution would have been required to perform if it were a Reporting New Zealand Financial Institution; The sponsoring entity identifies the Financial Institution and includes the identifying number of the Financial Institution (obtained by follow- ing applicable registration requirements on the 65 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued IRS FATCA registration website) in all reporting completed on the Financial Institution’s behalf; and The sponsoring entity has not had its status as a sponsor revoked.
f) Sponsored, Closely Held Investment Vehicle.

A New Zealand Financial Institution satisfying the following requirements: 1.
The Financial Institution is a Financial Institution solely because it is an Investment Entity and is not a qualified intermediary, withholding foreign partnership, or with- holding foreign trust pursuant to relevant U.S. Treasury Regulations; The sponsoring entity is a Reporting U.S. Financial In- stitution, Reporting Model 1 FFI, or Participating FFI, is authorized to act on behalf of the Financial Institu- tion (such as a professional manager, trustee, or man- aging partner), and agrees to perform, on behalf of the Financial Institution, all due diligence, withholding, re- porting, and other requirements that the Financial Insti- tution would have been required to perform if it were a Reporting New Zealand Financial Institution; The Financial Institution does not hold itself out as an investment vehicle for unrelated parties; Twenty or fewer individuals own all of the debt interests and Equity Interests in the Financial Institution (disre- garding debt interests owned by Participating FFIs and deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns 100 percent of the Equity Interests in the Financial Institution and is itself a spon- sored Financial Institution described in this paragraph C); and The sponsoring entity complies with the following re- quirements: a) The sponsoring entity has registered as a sponsor- ing entity pursuant to applicable registration re- 2.
3.

4.

5.
C. 66 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued quirements on the IRS FATCA registration web- site; The sponsoring entity agrees to perform, on be- half of the Financial Institution, all due diligence, withholding, reporting, and other requirements that the Financial Institution would have been required to perform if it were a Reporting New Zealand Financial Institution and retains docu- mentation collected with respect to the Financial Institution for a period of six years; The sponsoring entity identifies the Financial In- stitution in all reporting completed on the Finan- cial Institution’s behalf; and The sponsoring entity has not had its status as a sponsor revoked.
b) c) d) D. E. F. Investment Advisors and Investment Managers.

An Investment Entity established in New Zealand that is a Fi- nancial Institution solely because it (1) renders investment ad- vice to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a customer for the purposes of invest- ing, managing, or administering funds deposited in the name of the customer with a Financial Institution other than a Non- participating Financial Institution.

Collective Investment Vehicle.


An Investment Entity established in New Zealand that is regu- lated as a collective investment vehicle, provided that all of the interests in the collective investment vehicle (including debt interests in excess of $50,000) are held by or through one or more exempt beneficial owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, U.S.

Persons that are not Specified U.S.


Persons, or Financial Institutions that are not Nonparticipating Financial Institutions.

Special Rules.

The following rules apply to an Investment Entity: 1.
With respect to interests in an Investment Entity that is a collective investment vehicle described in paragraph E 67 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued of this section, the reporting obligations of any Invest- ment Entity (other than a Financial Institution through which interests in the collective investment vehicle are held) shall be deemed fulfilled.

2.
2.

With respect to interests in: a) b) An Investment Entity established in a Partner Jur- isdiction that is regulated as a collective invest- ment vehicle, all of the interests in which (in- cluding debt interests in excess of $50,000) are held by or through one or more exempt benefi- cial owners, Active NFFEs described in subpara- graph B(4) of section F of Annex I, U.S.

Persons that are not Specified U.S.


Persons, or Financial Institutions that are not Nonparticipating Finan- cial Institutions; or An Investment Entity that is a qualified collective investment vehicle under relevant U.S. Treasury Regulations; the reporting obligations of any Investment Entity that is a New Zealand Financial Institution (other than a Fi- nancial Institution through which interests in the col- lective investment vehicle are held) shall be deemed ful- filled.

3.
With respect to interests in an Investment Entity estab- lished in New Zealand that is not described in paragraph E or subparagraph F(2) of this section, consistent with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all other Investment Entities with respect to such interests shall be deemed fulfilled if the infor- mation required to be reported by the first-mentioned Investment Entity pursuant to the Agreement with re- spect to such interests is reported by such Investment Entity or another person.
68 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued Accounts Excluded from Financial Accounts.

V. The following accounts are excluded from the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable Ac- counts.

A.

Certain Retirement Accounts or Products.

Membership of the Whai Rawa approved retirement sav- ings scheme operated by Te Rūnanga o Ngāi Tahu.

Certain Savings Accounts.

1.

B.

Retirement and Pension Account.


A retirement or pen- sion account maintained in New Zealand that satisfies the following requirements under the laws of New Zealand.
a) The account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the pro- vision of retirement or pension benefits (includ- ing disability or death benefits); The account is tax-favored (i.e., contributions to the account that would otherwise be subject to tax under the laws of New Zealand are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); Annual information reporting is required to the tax authorities in New Zealand with respect to the account; b) c) e) d) Withdrawals are conditioned on reaching a speci- fied retirement age, disability, or death, or penal- ties apply to withdrawals made before such spe- cified events; and Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a maximum lifetime contribution limit to the account of $1,000,000 or less, in each case applying the rules set forth in Annex I for account aggregation and currency translation.
69 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued 2. b) Non-Retirement Savings Accounts.

An account main- tained in New Zealand (other than an insurance or An- nuity Contract) that satisfies the following requirements under the laws of New Zealand.
a) The account is subject to regulation as a savings vehicle for purposes other than for retirement; The account is tax-favored (i.e., contributions to the account that would otherwise be subject to tax under the laws of New Zealand are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); c) Withdrawals are conditioned on meeting specific criteria related to the purpose of the savings ac- count (for example, the provision of educational or medical benefits), or penalties apply to with- drawals made before such criteria are met; and Annual contributions are limited to $50,000 or less, applying the rules set forth in Annex I for account aggregation and currency translation.
d) Certain Term Life Insurance Contracts.

A life insurance contract maintained in New Zealand with a coverage period that will end before the insured individual at- tains age 90, provided that the contract satisfies the following requirements: 1.
Periodic premiums, which do not decrease over time, are payable at least annually during the period the con- tract is in existence or until the insured attains age 90, whichever is shorter; The contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without ter- minating the contract; The amount (other than a death benefit) payable upon cancellation or termination of the contract cannot ex- ceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges 2.
3.

C. 70 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule Annex II—continued D. E. (whether or not actually imposed) for the period or periods of the contract’s existence and any amounts paid prior to the cancellation or termination of the contract; and The contract is not held by a transferee for value.

4.

Account Held By an Estate.


An account maintained in New Zealand that is held solely by an estate if the documentation for such account includes a copy of the deceased’s will or death certificate.

Escrow Accounts.

An account maintained in New Zealand established in connec- tion with any of the following: 1.

2.

Legislation, a court order or judgment.
A sale, exchange, or lease of real or personal prop- erty, provided that the account satisfies the following requirements: a) The account is funded solely with a down pay- ment, earnest money, deposit in an amount ap- propriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a financial asset that is deposited in the account in connection with the sale, ex- change, or lease of the property; The account is established and used solely to se- cure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased prop- erty as agreed under the lease; The assets of the account, including the income earned thereon, will be paid or otherwise dis- tributed for the benefit of the purchaser, seller, lessor, or lessee (including to satisfy such per- son’s obligation) when the property is sold, ex- changed, or surrendered, or the lease terminates; b) c) 71 Schedule Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Annex II—continued d) e) The account is not a margin or similar account established in connection with a sale or exchange of a financial asset; and The account is not associated with a credit card account.
An obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a pay- ment solely to facilitate the payment of taxes or insur- ance related to the real property at a later time.

An obligation of a Financial Institution solely to facili- tate the payment of taxes at a later time.

3.

4.

Partner Jurisdiction Accounts.
An account maintained in New Zealand and excluded from the definition of Financial Account under an agreement between the United States and another Partner Jurisdiction to facilitate the implementation of FATCA, provided that such account is subject to the same requirements and oversight under the laws of such other Partner Jurisdiction as if such account were es- tablished in that Partner Jurisdiction and maintained by a Part- ner Jurisdiction Financial Institution in that Partner Jurisdic- tion.
Certain Other Accounts or Products.

An interest in a trust established in accordance with section 15S(1)(c) of the Tax Administration Act 1994 by a tax pooling intermediary for the purposes of administering a “tax pooling account” as defined in section RP 17B of the Income Tax Act 2007.

F. G. VI.

Definitions.

The following additional definitions shall apply to the descriptions above: A.

Reporting Model 1 FFI.


The term Reporting Model 1 FFI means a Financial Institu- tion with respect to which a non-U.S. government or agency thereof agrees to obtain and exchange information pursuant to a Model 1 IGA, other than a Financial Institution treated as a 72 2014/209 Double Tax Agreements (United States of America—FATCA) Order 2014 Schedule B. Annex II—continued Nonparticipating Financial Institution under the Model 1 IGA.
For purposes of this definition, the term Model 1 IGA means an arrangement between the United States or the Treasury De- partment and a non-U.S. government or one or more agencies thereof to implement FATCA through reporting by Financial Institutions to such non-U.S. government or agency thereof, followed by automatic exchange of such reported information with the IRS.

Participating FFI.
Participating FFI.

The term Participating FFI means a Financial Institution that has agreed to comply with the requirements of an FFI Agree- ment, including a Financial Institution described in a Model 2 IGA that has agreed to comply with the requirements of an FFI Agreement.

The term Participating FFI also includes a qual- ified intermediary branch of a Reporting U.S. Financial Insti- tution, unless such branch is a Reporting Model 1 FFI.
For purposes of this definition, the term FFI Agreement means an agreement that sets forth the requirements for a Financial In- stitution to be treated as complying with the requirements of section 1471(b) of the U.S. Internal Revenue Code.
In add- ition, for purposes of this definition, the term Model 2 IGA means an arrangement between the United States or the Treas- ury Department and a non-U.S. government or one or more agencies thereof to facilitate the implementation of FATCA through reporting by Financial Institutions directly to the IRS in accordance with the requirements of an FFI Agreement, supplemented by the exchange of information between such non-U.S. government or agency thereof and the IRS.
Michael Webster, Clerk of the Executive Council.

73 Explanatory note Double Tax Agreements (United States of America—FATCA) Order 2014 2014/209 Explanatory note This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 1 July 2014, gives effect to the Agreement between the Government of New Zealand and the Gov- ernment of the United States of America to Improve International Tax Compliance and to Implement FATCA (the agreement).
FATCA is the Foreign Account Tax Compliance Act, a United States federal law passed in 2010.

The agreement comes into force when the parties have notified each other that domestic procedures for bringing the agreement into force have been completed.
The date on which the agreement comes into force will be publicised on http://taxpolicy.ird.govt.nz/tax-treaties Once in force, the agreement has effect despite anything to the con- trary in the Income Tax Act 2007, any other Inland Revenue Act, the Official Information Act 1982, or the Privacy Act 1993.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 26 June 2014.

This order is administered by the Inland Revenue Department.
12 74 Wellington, New Zealand: Published under the authority of the New Zealand Government—2014