We work with our clients to structure and manage their investments in a tax efficient and compliant manner to manage both the NZ and US tax complexities they face, and ensure the other key financial aspects of their lives are by working in conjunction with accountants and lawyers.
We are specialists in managing the cross-jurisdictional complexities associated with investing that US citizens must adapt to when living in NZ.
These include:
PLEASE NOTE:
Cambridge Partners does not provide NZ or US tax advice or file NZ or US tax returns. Where required we work in partnership with our network of US-NZ accountants and US-NZ legal advisers to ensure the holistic requirements of our clients are met.
The US is almost unique in that its citizens or permanent residents (green card holders) remain US taxpayers irrespective of whether they reside in the US or not. So even if you are living in NZ, you remain a US taxpayer if you retain your US citizenship/residency status.
Prior to the rollout of the Foreign Account Tax Compliance Act (FATCA), US taxpayers faced very little risk of Inland Revenue Service (IRS) sanctions if they failed to fully comply with their US tax obligations.
Now, with the global rollout of FATCA, there is nowhere to hide, and US taxpayers must assume the IRS has complete visibility of their global assets and income. The penalties for non-compliance are substantial.
The US tax code is also the most complex in the world and this complexity is amplified when both the US and NZ tax codes must be adhered to at the same time. One basic issue is the December US tax year and the March NZ tax year, which requires financial records to be maintained and reported for both fiscal periods.
Another is the US-NZ Double Taxation Agreement (DTA) and its interaction with the tax codes of both countries which often leads to quite unexpected outcomes.
In this cross-jurisdictional world, the conventional US or NZ approaches and advice in relation to all aspects of a US citizen’s financial life do not translate well, often prove futile or have unintended consequences.
These complexities become a permanent feature that must be understood and factored into a wide range of financial and investment decisions that arise over the course of a family’s life.
We offer a no obligation review of your situation.
Our series of real-world case studies will help give you a full understanding of your investment options, and how different strategies are suited to different situations, goals and timelines.
You will also gain valuable insight on how our advisers work with their clients to achieve the outcomes they are looking for.
