Ministry of Business, Innovation and Employment
New Zealand is now ready to comply with US tax law that aims to reduce tax evasion by US persons who have financial accounts outside the United States said the New Zealand Bankers’ Association today.
The third reading of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill today, in conjunction with an intergovernmental agreement (IGA) signed last week between New Zealand and the United States, means that New Zealand financial institutions can comply with the US Foreign Account Tax Compliance Act (FATCA).
FATCA requires participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons and will be phased in from 1 July 2014.
To help implement FATCA New Zealand needed to enter into an agreement with the United States and to amend the Tax Administration Act 1994. The amendment passed today requires all financial institutions to collect information to determine whether a customer is a US person and to disclose required information to Inland Revenue. Under the agreement signed last week, Inland Revenue collates this information and passes it on to the US Internal Revenue Service.
“Our banks and New Zealand have little choice but to comply with FATCA,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Not complying could see banks penalised by a 30% withholding tax on principal and income from investments in the United States. US capital markets provide much of the funding most banks need to lend to New Zealand households and businesses. So there would be a huge impact on our economy if we didn’t comply.
“Complying with FATCA also allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts.
Kirk Hope is the chief executive of the NZ Bankers’ Association, the lobby group for the industry that employs over 25,000 people.
NZBA chief executive Kirk Hope said he was pleased more than three-quarters of customers were happy.
A public opinion survey has found a high level satisfaction among bank customers, the New Zealand Bankers’ Association said today. The survey also measured perceptions of the banking sector’s strength and acceptable profit levels.
Seventy-seven per cent of respondents were satisfied or very satisfied with their main bank, with only nine per cent dissatisfied or very dissatisfied.
“We’re pleased to see that more than three quarters of all bank customers are happy with their bank,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“The results reflect how competitive our banks are. They work hard to attract and keep their customers by providing excellent service.”
The survey also found that 61 per cent of respondents agreed that the strength of New Zealand banks meant that New Zealand got through the global financial crisis with less damage than other countries.
The public perceptions line up with local and international analysis of our banks’ performance. The World Economic Forum’s Global Competitiveness Report 2013-2014 rated New Zealand banks the second most sound in the world after Canada. An International Monetary Fund report in March this year found New Zealand banks to be well capitalised, accessing more stable forms of funding, and experiencing low and declining bad loans. These findings were reflected in the Reserve Bank’s recent Financial Stability Report.
“We have a strong, stable and well-regulated banking sector which supports our economic growth,” Hope said.
The survey also posed a question about what level of bank profits was acceptable. Of those with an opinion, the median range cited as an acceptable return on equity was 15-19 per cent.
“That’s higher than our banks’ actual average return on equity, which was 14.21% in the 2013 financial year,” said Hope.
Banks will never ask for your pins or passwords, and legitimate retailers shouldn’t ask you for pins or passwords either. It’s pretty much a sure sign someone’s trying to rip you off.
Kirk Hope is wary of Bitcoin volatility.
The New Zealand Bankers’ Association today encouraged people to be wary of online banking scams as part of Fraud Awareness Week 2014.
“Online scammers are constantly thinking up new ways to trick people into handing over personal information,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Never give anyone your PIN or internet banking username or password. Your bank will never ask you for this confidential information. Anyone who asks for this, even if they say they’re from your bank or a retailer you know, will in all likelihood be trying to scam you.
“Once scammers have that information, such as your account number, log-in details, or password, they can access your identity and your money.”
“If it doesn’t seem right, take care and double check it first before handing over personal information.”
“Everyone has a role to play in fighting fraud by being vigilant and reporting scams.
“Reporting scams raises public awareness and helps stop scammers in their tracks. Contact your bank as soon as possible if you think you’ve been taken in by a scam,” Hope said.
Scams can also be reported here.
Online scams are the focus of this year’s Fraud Awareness Week campaign, which is co-ordinated by the Ministry of Business, Innovation and Employment. More information about Fraud Awareness Week is available here.
Anyone who asks for your Pin number, even if they say they’re from your bank or a retailer you know, will in all likelihood be trying to scam you.
The New Zealand Bankers’ Association has welcomed the third reading of the Credit Contracts and Financial Services Law Reform Bill in Parliament last night.
The law change aims to crack down on loan sharks and requires lenders to act with skill, care and diligence in all dealings with a borrower throughout the life of a consumer credit contract. It will also introduce a Responsible Lending Code to provide guidance on how a responsible lender should behave.
“Banks are responsible lenders. We strongly support measures that target unscrupulous lenders and provide greater protection for vulnerable people. We’re keen to see all lenders held to the same standards we already observe,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“We look forward to working with government to help get the Responsible Lending Code right. It needs to strike a balance between protecting vulnerable consumers and ensuring legitimate and well-regulated lenders do not incur substantial additional compliance costs.
“The law change and the new Code present an opportunity to get this balance right.
“We congratulate Consumer Affairs Minister Craig Foss on getting the Bill through. It represents the biggest change in consumer credit law in more than a decade,” Hope said.