martes, 29 de marzo de 2016

Legislation on automatic exchange of information enacted in Australia

On 18 March 2016, legislation was enacted that implements the OECD’s Common Reporting Standard (CRS) for the automatic exchange of financial information in Australia as from 1 July 2017. The first exchanges of information will occur in 2018 for the period 1 July 2017 to 31 December 2017. In subsequent years, information will be exchanged for the preceding calendar year.
The CRS is a standardized set of rules developed by the OECD that requires financial institutions resident in a participating jurisdiction to implement due diligence procedures to document and identify reportable accounts, as well as to establish reporting processes on the reportable accounts identified.
Australia previously signed the CRS Multilateral Competent Authority Agreement (MCAA) on 3 June 2015. The MCAA is the administrative agreement that enables CRS information to be exchanged between countries’ tax authorities, provided appropriate legislation requiring financial institutions to identify and report the information and administrative arrangements for the exchange of information between tax authorities are in place.
The legislation enacts the requirements of the CRS into Australian law. As such, Australian financial institutions will need to implement due diligence procedures and report financial information and details on nonresident accountholders to the Australian Taxation Office (ATO).
The ATO will exchange this information with the foreign tax authorities of nonresidents in other signatory countries. Similarly, the ATO will receive financial account information annually on Australian residents in other countries. This transparency is intended to ensure that Australian residents with financial accounts in other countries are complying with Australian tax laws, and to act as a deterrent to tax evasion.
Source & more info: Deloitte

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