Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2016 – received Royal Assent as Act No 23 of 2016. The Bill amends Sch 1 to the Taxation Administration Act 1953 to insert a new Subdiv 396-C to require certain financial institutions in Australia (known as Reporting Financial Institutions) to report information to the Commissioner about financial accounts held by foreign tax residents.
This Act Amends the First Schedule to the Taxation Administration Act 1953 to: require financial institutions to carry out Common Reporting Standard due diligence procedures to identify reportable accounts held by foreign tax residents and provide statements about those accounts; require financial institutions to provide a statement in relation to certain accounts, if they receive a notice requiring them to do so; provide for administrative penalties when financial institutions fail to collect account holder self-certifications about the jurisdiction of residence for tax purposes; and require financial institutions to keep records for at least five years that explain the procedures used for identifying these accounts. Also makes consequential amendments to the Income Tax Assessment Act 1997, Tax and Superannuation Laws Amendment (2015 Measures No. 5) Act 2015 and the Taxation Administration Act 1953.