The ATO set out its timetable for implementation of banks and other financial institutions reporting accounts, held by non-residents, under the common reporting standard or ‘CRS‘ (implemented in Australia under the Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016). There is an equivalent obligation to report accounts held by residents of the USA under their Foreign Account Tax Compliance Act (‘FATCA‘)
These institutions will have to report to the ATO for a calendar year, by the following 31 July (by which time relevant ‘due diligence’ has to be completed also). Reporting for a full calendar year will apply for reports due on 31 July 2019. However, some reports will be due a year earlier: on 31 July 2018, and this will only be for the 6 month period from 1 July to 31 December 2017.
The reporting required on 31 July 2018 is ‘pre-existing entity accounts’ and ‘pre-existing high value individual accounts. Pre-existing low value individual accounts will join the others having to be reported on 31 July 2019.
The ATO will exchange information with other taxing authorities around the world on 30 September 2018 and each year following.
Similarly, the ATO will receive reports, about Australian residents with foreign accounts, on 30 September 2018 and each year following. This is designed to help ensure that Australian residents with financial accounts in other countries are complying with Australian tax law and to act as a deterrent to tax evasion.
[ATO CRS & FATCA timetable] [LTN 96, 20/5/16]