Common Reporting Standard (CRS)

Frequently asked questions

Australia is one of many countries that has committed to new global standards on the automatic exchange of financial account information. This information is required by law to be collected by financial institutions around the world for reporting to tax authorities. Tax authorities will exchange this information to assist in making sure everyone pays the right amount of tax.

From 1 July 2017, AMP is required to identify customers who are foreign tax residents investing in deposit and investment type products.  When opening a new account, the foreign tax residency section must be completed by customers (this replaces the existing FATCA section).  Where a customer is a foreign tax resident they must provide their country of tax residency and their Tax Identification Number (TIN) or select a reason for not having one.

CRS aims to assist in the exchange of financial account information between global tax agencies to detect and deter tax evasion.

From 1 July 2017.

All customers opening a deposit or investment type account will need to answer the foreign tax details section regarding their foreign tax residency status.

  • When a customer opens a new deposit or investment type account they will need to complete the new foreign tax residency questions. 
  • Paper forms will be changed to include a foreign or additional tax details section to capture all foreign tax residents and their information.  All customers must answer the question regarding their foreign tax status. 
  • Where a customer is a foreign tax resident they will need to provide their country of tax residency and their Tax Identification Number (TIN). 
  • In some cases, a customer may not have a TIN, and can select from one of three reasons provided.
  • For entities, the foreign tax details section must be completed for the entity itself and, for some types of entities, the section must also be completed for controlling persons who are foreign tax residents.
  • Customers opening a deposit or investment type account will need to answer ‘Yes’ or ‘No’ as to their foreign tax residency status.
  • If you answer ‘No’ that you are not a foreign tax resident, you don’t have to do anything further.
  • If you answer ‘Yes’, you will have to provide the country of tax residency and your Tax Identification Number (TIN).
  • If you don’t have a TIN, you need to select one of the acceptable reasons for not having a TIN (ie your country of tax residency does not have TINs or you have applied for a TIN but not received it yet or your country does not require that you provide your TIN).

You will have to answer the foreign tax details section in the application form for the entity and for some types of entities, the section must also be completed for controlling persons of that entity.

If there is an inconsistency between your address and your tax residency, you will need to select a reason for this and in some circumstances we will ask you to provide some additional documentation.

Existing customers with an indicator (indicia) of a foreign tax residency (ie an overseas address) may be contacted to provide a self-certification regarding their foreign tax residency status.

If you are a foreign tax resident your tax residency details, customer information, account balance and payments information will be provided annually to the ATO. The ATO will then send the information to the tax authority in the country of your tax residence. If you are an Australian tax resident and you have accounts in financial institutions overseas, the ATO will receive your information from the tax authority of that jurisdiction.

Glossary

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Term/Abbreviation

Definition

Account Holder

The person (individual or entity) that is listed or identified as holding an account with a financial institution.

AEOI

Automatic Exchange of Information. The new global OECD standard aims to ensure everyone pays the right amount of tax.  It provides for the exchange of account information of foreign tax residents between international tax agencies.

AML

Anti-Money Laundering

ATO

Australian Taxation Office

Controlling Persons / CP

The natural persons who exercise control over an entity.  For a trust, this includes the settlor, the trustees, and the beneficiaries and for a company, this includes an individual that owns directly or indirectly 25% of the entity.

CRS

Common Reporting Standard

Entity

This includes companies, trusts, partnerships and associations.

FATCA

Foreign Account Tax Compliance Act.

Financial Account

An account maintained by a financial institution.

Financial Institution (FI)

Financial Institution. There are four types of Financial Institutions covered by CRS; Custodial Institution, Depository Institution, Investment entity and Specified Insurance Companies.

FTR

Foreign tax residency or foreign tax resident

FTR Indicia

Certain account information that indicates the account holder may be a foreign tax resident (e.g. a foreign address, phone number).

OECD

Organisation for Economic Co-operation and Development

Passive NFE

An entity that is not an Active NFE and an entity that is an investment entity such as a professionally managed investment entity, that is not in a CRS participating jurisdiction.

Pre-existing Account

An active account as at the 30/06/2017.

Pre-existing Customer

Customer with an active account that is subject to CRS as at 30/06/2017.

Reasonableness Test

When the customer provides their tax residency, the other information provided by the customer is compared against the tax residency of provided by the customer.  If there is an inconsistency, a reason must be provided by the customer to explain the inconsistency.

Reportable Account

A reportable account is an account held by one or more Reportable Persons or by a Passive NFE with one or more Controlling Persons that is a Reportable Person.

Reportable Person

An account holder or controlling person of a passive NFE that has been identified as being a foreign tax resident.

Reporting Period / Year

For Australia reporting commences on 31 July 2018 and then as at 31 July each year.

TIN

Tax Identification Number

U.S. person

A US person means a US citizen or resident individual, a partnership or corporation organised in the US or under the laws of the US, and certain resident trusts. A US person (for FATCA purposes) may not be resident in the U.S.

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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.