Common Reporting Standards CRS
Koffels CLE Presentation by Jess Hui
The Common Reporting Standard (CRS) is the single global standard for the collection, reporting and exchange of financial account information on foreign tax residents. Banks and other financial institutions will collect and report to us financial account information on non-residents using the standard. We will exchange this information with the participating foreign tax authorities of those non-residents. In parallel, we will receive financial account information on Australian residents from other countries’ tax authorities. This will help ensure Australian residents with financial accounts in other countries comply with our tax law and deter tax evasion.
Financial institutions such as banks and other deposit taking institutions, custodial institutions, investment entities, and specified insurance companies are required to report under the Common Reporting Standard (CRS). The reported financial account information includes details of the account holder, interest, dividends, account balance or value and other income generated, or payments made, with respect to the account.
The Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016 takes effect in Australia on 1 July 2017. From this date, Reportable Financial Institutions will be required to complete due diligence and report information to the ATO on accounts held by foreign tax residents. The first report, covering the period 1 July 2017 to 31 December 2017, will need to be lodged with the ATO by 31 July 2018. Following reports will cover the full calendar year due annually by 31 July.
The Common Reporting Standard (CRS) is part of a broader suite of international transparency measures such as Foreign Account Tax Compliance Act (FATCA), Exchange of Rulings (EoR) and Country-by-Country Reporting (CbC).
ATO Website further reading.