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Australia Publishes Draft Bill to Implement Common Reporting Standard for the Automatic Exchange of Financial Account Information — Orbitax Tax News & Alerts

On 18 September 2015, the Australian Treasury published an exposure draft of the Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015: Common Reporting Standard for public comment. The legislation is for the implementation of the OECD Common Reporting Standard (CRS) for the automatic exchange of financial account information. Australian financial institutions with at least one reportable account during a calendar year will be required to submit a statement for each account to the Commissioner by 31 July of the year following the year to which the information relates. According to the CRS, The term “reportable account” means accounts held by individuals and entities (which includes trusts and foundations), and the standard includes a requirement to look through passive entities to report on the relevant controlling persons.

The reporting requirement will apply for calendar years beginning 1 January 2017, although reporting financial institutions will be allowed to elect a 12-month deferral of the obligation.

Public comments are due by 9 October 2015. Click the following links for the Treasury media release, including instruction for submitting comments, the Explanatory Memorandum, and the full text of the Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015: Common Reporting Standard.