CRS 2017/005
Issued
29 Jun 2017

Employee's account in a share purchase scheme (referred to in sections DC 12-DC 15 Income Tax Act 2007)

Sections DC 12 to DC 15 of the Income Tax Act 2007 have been replaced by sections CW 26B and CW 26C (effective 29 March 2018). The references in this determination to sections DC 12 to DC 15 should be read as referring to sections CW 26B and CW 26C (from 29 March 2018).

 

Determination CRS 2017/005 - A financial account held by an employee in a share purchase scheme that is referred to in sections DC 12-DC 15 of the Income Tax Act 2007 is an excluded account for the purposes of the CRS applied standard and requirements under Part 11B of the Tax Administration Act 1994.

Reference

This determination is made under section 91AAW of the Tax Administration Act 1994. This power has been delegated by the Commissioner of Inland Revenue to the position of Group Manager, Investigations and Advice, under section 7 of that Act.

Interpretation

"CRS applied standard" means the CRS standard as modified by section 185O for the determination of requirements under the Tax Administration Act 1994.

"CRS publication" means the Standard for Automatic Exchange of Financial Account Information in Tax Matters, published by the Organisation for Economic Co-operation and Development.

"CRS standard" means the Common Standard on Reporting and Due Diligence for Financial Account Information, as amended from time to time, which is a standard—
(a) developed by the Organisation for Economic Co-operation and Development and the Group of Twenty countries; and
(b) agreed by the Council for the Organisation for Economic Co-operation and Development on 15 July 2014; and
(c) contained in Part IIB of the CRS publication.

"Employee" has the definition set out in section DC 15(1) of the Income Tax Act 2007.

"Financial account" means an account defined as a financial account in Section VIII(C)(1) of the CRS standard.

"Share purchase scheme" means a scheme referred to in sections DC 12-DC 15 of the Income Tax Act 2007, that meets the criteria set out in sections DC 13-DC 14 of the Income Tax Act 2007, and that has been approved by the Commissioner of Inland Revenue.

"Share purchase scheme account" means a financial account held by an employee in a share purchase scheme.

Scope of determination

A share purchase scheme account, as defined in this determination, does not fully satisfy the requirements for, but has substantially similar characteristics to, a savings or investment account in subparagraph (C)(17)(b) of Section VIII of the CRS standard.

Determination

A share purchase scheme account, as defined in this determination, is an excluded account for the purposes of the CRS applied standard and the requirements under Part 11B of the Tax Administration Act 1994.

Application date

This determination applies for the reporting period beginning 1 July 2017, and subsequent reporting periods under the CRS applied standard.

Dated at Wellington this 29th day of June 2017.

Patrick Goggin
Group Manager, Investigations and Advice