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Sharing information to combat global tax evasion
A transcript of the Sharing information to combat global tax evasion video.
Inland Revenue's logo appears and slides up and off the screen.
An image of Earth slides into view from the top of the screen. Circles with the dollar symbol in the middle start popping up around the Earth.
Solid and dotted lines start linking the circles - indicating travel and transfer of money.
"In our modern world money knows no borders - it can travel across the globe in an instant."
"This helps support international trade and 21st century economies."
The image of Earth slides up and off the screen.
The circles turn into coins and fall into a bag. The bag has "Income Tax" written on it.
As coins fall into it, the bag starts to fill with colour from the bottom. Some of the coins bounce out of the bag and turn a different colour - indicating tax evasion.
"But these changes also make it easier for some individuals to avoid paying the right amount of tax."
The income tax bag slides down and off the screen.
Building blocks fall from the top to create two buildings. One building has "Hospital" written on it, the other has "School".
An Earthworks tip truck comes into view from the left side. A traffic road cone and construction barrier appear behind the tip truck to complete the city scene.
"And tax is important because Governments use it to pay for services we all need."
The city scene slides down and off the screen.
A document slides into view from the top, with "OECD" and "Automatic Exchange of Information" written on it. The outline of New Zealand appears in a circle on the bottom right of the document.
The title "Automatic Exchange of Information" pops out of the document and the letters "A", "E", "O" and "I" pulse as they are said by the speaker.
"That’s why the New Zealand government has signed up to a global initiative led by the OECD called, the Automatic Exchange of Information - or AEOI."
The document fades away and is replaced by an image of the Earth.
The outline of New Zealand in the circle remains, moves to New Zealand's location on the Earth and is replaced by a document with a signature.
More documents with signatures start popping up around the Earth.
"We’re one of 100 countries that have agreed to automatically share some financial account information about foreign tax residents."
Dotted lines with circles on them start linking the documents - indicating the travel of information.
"By working together we’ll make it easier to deal with global tax evasion."
The screen zooms into the document where New Zealand is located and fades away.
"So, how does AEOI work?"
A circle with an image of a calendar and "1 July" written on it appears in the middle of the screen. "1 July" peels off the circle to reveal "2017".
The 2017 circle slides up and off the screen.
Rectangles slide up and a new city is formed with two buildings in the background, and three buildings in the foreground. In the middle of the foreground is a building with "BANK" written on it.
"From 1st July 2017, financial institutions in New Zealand – like banks, and some investment managers, managed trusts and certain brokers…"
A circle with an image of a person in the middle appears above the bank. Three more of the same circles appear on each side of the first circle. Solid lines connect each surrounding circle to the middle circle.
The bottom left and middle right circles start pulsing.
The bottom left circle slides to the left of the screen onto an ID card. The city and remaining circles fade away.
An office building slides into view from the right, taking up half the screen. Inland Revenue's logo is displayed under the office building.
"…will be required to identify their customers who are foreign tax residents and send their financial information to us at Inland Revenue."
The ID card opens up and a list appears with the headings:
- "Tax ID No."
- "Account details", and
- "Gross income".
Each of the headings is highlighted and pops out of the ID card when said by the speaker.
"This includes their name, date of birth, address, country of tax residence, tax identification number, account details - including their annual balance - and gross income on any investments."
The ID card closes and fades away.
An image of the Earth slides down into view and starts spinning.
The ID card slides left from behind the Inland Revenue building to the image of the Earth and fades away.
"We’ll then share this information with their home country if we have an exchange agreement with that country."
ID cards pop up around the Earth and slide right to the Inland Revenue building.
"In return, we’ll receive the same financial information about New Zealand tax residents from other countries that have also signed up to AEOI."
The Inland Revenue building slides down out of view and the Earth fades away.
An image of a woman sitting in front of a computer slides up from the bottom and into view. The computer screen displays the words "New Zealand Financial Account", an outline of New Zealand inside a coloured circle and an image of a mouse pointer arrow on it.
The image of the woman sitting in front of the computer shrinks to the bottom left of the screen. The Inland Revenue building and Earth appear. A dotted line appears, linking the computer, Inland Revenue building and Earth together.
"This means, if you’re a foreign tax resident with a New Zealand financial account, or control an account, we may share this information with your home country."
The woman sitting in front of a computer, Inland Revenue building and Earth images slide to the left and off the screen.
A house and street light image slides into view from the right. The house has three windows and a door.
The camera zooms into the third window from the left revealing the inside of the house.
Inside the house there is a:
- tall floor lamp on the left
- man sitting at a table working on a laptop in the middle
- picture frame with a family portrait above the man, and
- a couch with a window behind it on the right.
"If you’re a New Zealand tax resident and have financial accounts in any of the countries that have signed-up up to AEOI, this information may be shared with us."
The house scene slides down and off the screen.
A bank scene slides into view from the top. The man at the laptop remains with the transition.
In the bank scene there is a:
- pot plant on the left
- clock above the pot plant
- man in the middle sitting at a desk
- woman sitting opposite the man at the desk working on a computer
- bank teller counter with a computer screen on it on the right.
A circle appears above the woman's head with an image of a computer screen. A circle with a plus symbol in the middle appears on the top right side of the computer screen.
The circle with the computer screen is replaced by a circle with a question mark.
"And, financial institutions will ask you about your tax residence when you open a new account and they may ask you questions in relation to your existing accounts."
The bank scene slides up and off the screen.
A mouse pointer arrow appears in the bottom right corner an moves to the middle of the right side of the screen.
The web address "www.ird.govt.nz/infoshare" appears in the middle of the screen.
The New Zealand Government and Inland Revenue logos slide up from the bottom of the screen.
"If you want to find out more about AEOI and tax residency go to ird.govt.nz/infoshare."