Foreign Superannuation Withdrawal Amnesty (Summer 2015)
- Have you ever had a Foreign Superannuation Scheme and withdrawn funds or transferred funds from this?
- Did you account for New Zealand tax on these funds?
If you have answered YES to the first and NO to the second question, you should be talking to us about using the Inland Revenue amnesty, which runs out on your 2015 income tax return.
If you withdrew or transferred funds at any time between 1 January 2000 and 31 March 2014, and have not previously accounted for New Zealand tax on these funds, you will be able to meet your tax obligations by paying tax on 15% of the amount withdrawn or transferred.
The remaining 85% of that sum will not attract income tax.
However, it has to be shown in the tax return for the 2013-14 or 2014-15 income years.
For a limited period of time only, you can choose to calculate your tax liability using this concessionary 15% rate option without penalties or interest, or under existing law (which may involve imposition of penalties and interest).
Talk to us to work through the options that are best for your situation.
We understand Inland Revenue are currently commencing audits on withdrawals that have not been declared, so please contact us if you have a Foreign Super scheme and have withdrawn or transferred funds in previous years.
Going forward, if you are considering transferring funds, there are tax implications so please discuss with us first.
If you have any questions or would like further information, please feel free to contact us.