Document ID: chunk:federal_register_of_legislation:C2019C00094:clause:1_13:p1
Version: federal_register_of_legislation:C2019C00094
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 1/6)
Character Range: 10997–14095

13  At the end of Division 396 in Schedule 1
Add:

Subdivision 396‑C—Common Reporting Standard

Guide to Subdivision 396‑C

396‑100  What this Subdivision is about

      Australian Financial Institutions must give the Commissioner certain information about accounts of foreign residents. This obligation is based on the Common Reporting Standard.
          Note 1: This obligation will assist the Australian Government to exchange information with other jurisdictions in accordance with international agreements, such as the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, done at Strasbourg on 25 January 1988.
           In 2015, the text of the Convention was available on the OECD's website (http://www.oecd.org).
          Note 2: The purpose of the Common Reporting Standard is to reduce international tax evasion. It sets out due diligence procedures for financial institutions to apply to identify account holders that are foreign tax residents, and provides for financial institutions to report information with respect to such account holders.
      This Subdivision also creates record‑keeping obligations in relation to the requirement to give the Commissioner information.
      This Subdivision also requires the Commissioner to report on certain Reportable Accounts that are maintained by Australian Reporting Financial Institutions.

Table of sections

Operative provisions
396‑105 Statements about Reportable Accounts
396‑110 Meaning of CRS
396‑115 Matters Common Reporting Standard leaves to domestic law
396‑120 Application of Common Reporting Standard
396‑125 Record keeping
396‑130 Anti‑avoidance provisions
396‑135 Application of penalty to false or misleading self‑certification

Operative provisions

396‑105  Statements about Reportable Accounts
 (1) Subsection (2) applies if:
 (a) at any time in a calendar year, an entity:
 (i) is a Reporting Financial Institution (within the meaning of the *CRS); or
 (ii) is an institution that a notice under subsection 396‑130(5) requires to act as a Reporting Financial Institution; and
 (b) at that time in the year, the entity:
 (i) is resident in Australia (within the meaning of the CRS); or
 (ii) is a branch located in Australia (within the meaning of the CRS); and
 (c) at any time in the year, the entity maintains:
 (i) a Reportable Account (within the meaning of the CRS); or
 (ii) an account that a notice under subsection 396‑130(2) requires the entity to treat as a Reportable Account.
Note: Subsection 396‑120(3) applies the CRS to all jurisdictions.
 (2) The entity must give the Commissioner a statement that contains in respect of the account the information that the *CRS states the entity must report.
Note: Section 286‑75 provides an administrative penalty for breach of this subsection.
 (3) Whether an entity maintains a Reportable Account (within the meaning of the *CRS) must be determined by the entity by applying the due diligence procedures described in the CRS.
Note: Section 288‑85 provides an administrative penalty for failing to obtain a self‑certification in relation