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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (Implementation
of the FATCA Agreement) Bill 2014
No. , 2014
(Treasury)
A Bill for an Act to implement the FATCA
Agreement, and for related purposes
No. , 2014
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--FATCA
3
Income Tax Assessment Act 1997
3
Taxation Administration Act 1953
3
No. , 2014
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
1
A Bill for an Act to implement the FATCA
1
Agreement, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment
5
(Implementation of the FATCA Agreement) Act 2014.
6
2 Commencement
7
This Act commences on the day this Act receives the Royal
8
Assent.
9
2
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
No. , 2014
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
FATCA Schedule 1
No. , 2014
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
3
Schedule 1
--FATCA
1
2
Income Tax Assessment Act 1997
3
1 Subsection 995-1(1)
4
Insert:
5
FATCA Agreement has the meaning given by section 396-15 in
6
Schedule 1 to the Taxation Administration Act 1953.
7
Taxation Administration Act 1953
8
2 After Division 394 in Schedule 1
9
Insert:
10
Division 396
--
FATCA
11
Guide to Division 396
12
396-1 What this Division is about
13
This Subdivision gives effect to the FATCA Agreement between
14
the Government of Australia and the Government of the United
15
States of America.
16
Reporting Australian Financial Institutions must give the
17
Commissioner certain information about U.S. Reportable
18
Accounts. For the 2015 and 2016 calendar years, they must also
19
give the Commissioner information about payments made to
20
Nonparticipating Financial Institutions.
21
This Subdivision also creates record-keeping obligations in relation
22
to the requirements to give the Commissioner information.
23
Table of sections
24
396-5
Statements about U.S. Reportable Accounts
25
396-10
Statements about payments to Nonparticipating Financial Institutions
26
Schedule 1 FATCA
4
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
No. , 2014
396-15
Meaning of the FATCA Agreement
1
396-20
Permissions and elections
2
396-25
Record keeping
3
396-5 Statements about U.S. Reportable Accounts
4
(1) Subsection (2) applies if:
5
(a) an entity is a Reporting Australian Financial Institution
6
(within the meaning of the
*
FATCA Agreement) at any time
7
in a calendar year; and
8
(b) the entity maintains a U.S. Reportable Account (within the
9
meaning of the FATCA Agreement) at any time in the year.
10
(2) The entity must give the Commissioner a statement that contains
11
the information in respect of that U.S. Reportable Account that the
12
Australian Government is required to obtain in order for it to fulfil
13
its obligations under the
*
FATCA Agreement in respect of that
14
U.S. Reportable Account.
15
(3) The information contained in the statement must be determined by
16
the entity by applying the due diligence procedures required under
17
the
*
FATCA Agreement.
18
Note:
Those due diligence procedures are specified in Annex I to the
19
FATCA Agreement, subject to the application of Article 7 of that
20
Agreement (consistency in the application of FATCA to partner
21
jurisdictions).
22
(4) A statement under subsection (2) must be in the
*
approved form.
23
(5) More than one statement under subsection (2) may be included in
24
the same document.
25
(6) The statement must be given to the Commissioner no later than the
26
first 31 July after the end of the year.
27
Note:
Section 388-55 allows the Commissioner to defer the time for giving
28
an approved form.
29
396-10 Statements about payments to Nonparticipating Financial
30
Institutions
31
(1) Subsection (2) applies if:
32
FATCA Schedule 1
No. , 2014
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
5
(a) an entity is a Reporting Australian Financial Institution
1
(within the meaning of the
*
FATCA Agreement) at any time
2
in a calendar year; and
3
(b) the calendar year is the 2015 or 2016 year; and
4
(c) the entity makes a payment to a Nonparticipating Financial
5
Institution (within the meaning of the FATCA Agreement) at
6
any time in the year.
7
(2) The entity must give the Commissioner a statement that contains
8
the information in respect of that payment that the Australian
9
Government is required to obtain in order for it to fulfil its
10
obligations under the
*
FATCA Agreement in respect of that
11
payment.
12
(3) The information contained in the statement must be determined by
13
the entity by applying the due diligence procedures required under
14
the
*
FATCA Agreement.
15
Note:
Those due diligence procedures are specified in Annex I to the
16
FATCA Agreement, subject to the application of Article 7 of that
17
Agreement (consistency in the application of FATCA to partner
18
jurisdictions).
19
(4) A statement under subsection (2) must be in the
*
approved form.
20
(5) More than one statement under subsection (2) may be included in
21
the same document.
22
(6) The statement must be given to the Commissioner no later than the
23
first 31 July after the end of the year.
24
Note:
Section 388-55 allows the Commissioner to defer the time for giving
25
an approved form.
26
396-15 Meaning of the FATCA Agreement
27
The FATCA Agreement is the Agreement between the
28
Government of Australia and the Government of the United States
29
of America to Improve International Tax Compliance and to
30
Implement FATCA, done at Canberra on 28 April 2014.
31
Note:
The text of the Agreement is set out in Australian Treaty Series [2014]
32
ATNIF 5. In 2014, the text of the Agreement in the Australian Treaty
33
Series was accessible through the Australian Treaties Library on the
34
AustLII website (www.austlii.edu.au).
35
Schedule 1 FATCA
6
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
No. , 2014
396-20 Permissions and elections
1
(1) This section applies, for the purposes of this Division:
2
(a) in determining whether the conditions in
3
subsections 396-5(1) and 396-10(1) are satisfied; and
4
(b) in determining which information the Australian Government
5
is required to obtain in order for it to fulfil its obligations
6
under the
*
FATCA Agreement.
7
(2) To the extent that the
*
FATCA Agreement gives Australia the
8
ability to permit an entity to use or rely on matters provided for in
9
U.S. Treasury Regulations in determining obligations under the
10
FATCA Agreement, assume that the permission has been given.
11
(3) To the extent that the
*
FATCA Agreement gives Australia the
12
ability to provide for an entity to make an election in determining
13
obligations under the FATCA Agreement, assume that the entity
14
may make the election.
15
396-25 Record keeping
16
(1) If an entity is obliged to give the Commissioner a statement under
17
subsection 396-5(2) or 396-10(2), the entity must keep written
18
records that:
19
(a) correctly record the procedures by which the entity
20
determines the information that is required to be contained in
21
the statement; and
22
(b) are in English, or readily accessible and easily convertible
23
into English.
24
(2) The entity must retain the records until the expiration of 5 years
25
after the entity gives the Commissioner the statement under
26
subsection 396-5(2) or 396-10(2).
27
Note:
Section 288-25 imposes an administrative penalty if an entity does not
28
keep and retain records as required by this section.
29
FATCA Schedule 1
No. , 2014
Tax Laws Amendment (Implementation of the FATCA Agreement) Bill
2014
7
3 Application
1
Application rules
2
(1)
Subject to subitem (2), the amendments made by this Schedule apply in
3
relation to a U.S. Reportable Account that is maintained by a Reporting
4
Australian Financial Institution on or after 1 July 2014.
5
(2)
The following provisions apply in relation to a payment that is made by
6
a Reporting Australian Financial Institution on or after 1 July 2014:
7
(a) section 396-10 in Schedule 1 to the Taxation Administration
8
Act 1953 (as inserted by this Schedule);
9
(b) any other provision inserted in that Schedule by this
10
Schedule, to the extent that the provision relates to the
11
section mentioned in paragraph (a).
12
Permissions and elections
13
(3)
For the purpose of subitems (1) and (2), subsections 396-20(2) and (3)
14
in Schedule 1 to the Taxation Administration Act 1953 (as inserted by
15
this Schedule) apply in determining the meaning of a term used in those
16
subitems.
17