Show download pdf controls
  • 7 Transitional

    7.1 FATCA reporting of U.S. TINs

    The information required to be reported by an RFI includes the U.S. TIN of each specified U.S. person that is an account holder and, in the case of a non-U.S. entity with one or more specified U.S. persons who are controlling persons, the U.S. TIN of each controlling person. Notwithstanding this reporting requirement, before 2017, an RFI was not required to report a U.S. TIN for a Pre-existing Account if the U.S. TIN was not in the reporting RFI’s records.

    The IRS has advised by Notice 2017-46External Link that it will not consider an RFI as being in significant non-compliance with the obligations under the FATCA Agreement solely because of a failure to obtain and report each required U.S. TIN, provided that the RFI:

    • obtains and reports the date of birth of each account holder and controlling person whose U.S. TIN is not reported
    • requests annually from each account holder any missing required U.S. TIN, and
    • before reporting information that relates to calendar year 2017 (to the ATO), searches electronically searchable data maintained by the RFI for any missing U.S. TINs.

    An RFI that has been unable to collect a U.S. TIN for a U.S. reportable account must, for 2018 calendar year reports due to be lodged by 31 July 2019, use nine capital As (AAAAAAAAA) to populate the US TIN data element. Nine zeros is no longer acceptable for that year or later years.

    U.S. TINs will be mandatory for individuals and Controlling Persons when reporting on the 2020 and subsequent years.

    RFIs should implement practices and procedures promptly to ensure that financial accounts are documented in accordance with the FATCA Agreement and that U.S. reportable accounts are adequately and timely reported in future years.

    8 Glossary

    When obtaining self-certifications or other information from Account Holders, an RFI will need to use a range of terms with specific meaning under the CRS and FATCA. Following are some short form definitions that may be useful in assisting Account Holders to provide correct information. Some or all of these short form definitions may be used by an RFI for that purpose.

    It is recommended that any use of these simplified definitions should be accompanied by a note that the explanations are a summary only and more information can be found through a link or reference to this Guidance.

    Account Holder means an individual or entity listed or identified as the holder of a Financial Account. A person, other than a financial institution, holding a Financial Account for the benefit of another person as an agent, a custodian, a nominee, a signatory, an investment advisor, an intermediary, or as a legal guardian, is not treated as the Account Holder. In these circumstances that other person is the Account Holder. For example in the case of a parent/child relationship where the parent is acting as a legal guardian, the child is regarded as the Account Holder. For a jointly held account, each joint holder is treated as an Account Holder.

    Active NFE is an NFE that meets any of these criteria:

    • active by reason of income and assets (less than 50% of the NFE’s gross income for the preceding year or other appropriate reporting period is passive income and less than 50% of the assets held by the NFE during the preceding year or other appropriate reporting period are assets that produce or are held for the production of passive income
    • publicly listed NFE
    • Governmental Entity, International Organisation, Central Bank, or their wholly owned entity
    • holding NFE that is a member of a non-financial group (generally where substantially all of the activities of the NFE consist of holding the shares of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses)
    • NFE that is not yet operating a business and has no prior operating history, (a start-up NFE) but is investing capital into assets with the intent to operate a business
    • NFE that is liquidating or emerging from bankruptcy
    • treasury centre that is a members of a nonfinancial group
    • not-for-profit NFE operating exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or a professional organisation, business league, chamber of commerce, labour organisation, or other organisation operated exclusively for the promotion of social welfare.

    Controlling Person is generally a natural person who exercises control over an entity. Control depends on the legal structure of the entity.

    • For a company, Controlling Persons include any natural person that holds directly or indirectly more than 25 percent of the shares or voting rights of the entity as a beneficial owner. If no such person exists, then it is any natural person(s) that otherwise exercise control over the management of the entity (for example, the senior managing official of the company).
    • For a trust, the term Controlling Persons means the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust.
    • For a partnership Controlling Person means any natural person who exercises control through direct or indirect ownership of the capital or profits of the partnership, voting rights in the partnership, or who otherwise exercises control over the management of the partnership.

    Entity means a legal person or a legal arrangement, such as a company, organisation, partnership or trust.

    Financial institution means a Custodial Depository Institution, an Investment Entity, or a Specified Insurance Company.

    Investment Entity includes two types of entities.

    An entity that primarily conducts as a business for or on behalf of customers

    • trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodity futures trading
    • individual and collective portfolio management
    • otherwise investing, administering, or managing financial assets or money on behalf of other persons.

    Alternatively an entity that derives 50% or more of its gross income from investing, reinvesting, or trading in financial assets and the entity is managed by another entity that is a financial institution. A financial institution manages an entity if it has discretionary authority manage the other entity’s financial assets (either in whole or part).

    NFE is any entity that is not a financial institution.

    Non-Participating Jurisdiction means generally a jurisdiction with which Australia does not yet have an agreement to automatically exchange financial account information using the Common Reporting Standard (CRS). See CRS Participating Jurisdictions.

    Passive NFE means any NFE that is not an Active NFE. An Investment Entity located in a Non-Participating Financial Institution is also treated as a Passive NFE for the purposes of the CRS.

    Resident (for tax purposes) means resident under the tax laws of a jurisdiction. The OECD has compiled information on tax residency for most jurisdictions, see Automatic Exchange Portal.External Link

    Taxpayer Identification Number or TIN is a unique combination of letters or numbers assigned by some jurisdictions to an individual or an entity which is used to identify the individual or entity for the purposes of administering the tax laws of that jurisdiction.

    9 Updates to this Guidance

    This AEOI guidance material is updated from time to time. The table below contains the updates to this guidance in chronological order and a description of significant updates or changes made:

    Details of updates to this Guidance

    Date of update

    Updates or changes made

    April 2016

    • original publication

    June 2016

    • 7 – new content for transitional arrangements for exchange traded product issuers

    September 2016

    • 1.3 – new example of effect of the 'wider approach' on FATCA practices
    • 2.1 – new content on the residence of RFIs that are trusts and the maintenance of accounts
    • 3.6 – revised content on interests in Investment Entities 'regularly traded on an established securities market'
    • 3.9 – new listing of Excluded Accounts
    • 3.10 – new listing of retirement and pension accounts
    • 3.11 – revised content on Escrow Accounts held by non-financial intermediaries
    • 3.15 – new content on collateral and derivative arrangements – Custodial Accounts
    • 4 – new introduction to Due Diligence chapter
    • 4.2 – new content on alternative procedures and elections
    • 4.3 – new content on treatment of New Accounts as Pre-existing Accounts and joint account holders opening a New Account
    • 4.5 – new content on due diligence – Pre-existing Individual Accounts, Lower Value Accounts
    • 4.6 – new content on due diligence – Pre-existing Individual Accounts, High Value Accounts
    • 4.7 – new content on TINs and reasonableness of self-certifications for New Individual Accounts
    • 4.8 – new content on due diligence – pre-existing entity account thresholds
    • 4.9 – new content on due diligence – pre-existing entity accounts
    • 4.10 – new content on due diligence – New Entity Accounts
    • 4.11 – revised content on due diligence – settlors of trusts
    • 4.12 – revised content on beneficiaries of trusts – Controlling Persons
    • 4.14 – new content on validity and reasonableness of a self-certification
    • 5.1 – new content on Reportable Accounts
    • 5.2 – new content on Reportable Persons
    • 5.3 – new content for reportable information for Reportable Accounts
    • 5.4 – new content on account balance or value
    • 5.5 – new content on Taxpayer Identification Numbers (TINs) and date of birth
    • 5.6 – new content on closed accounts
    • 5.7 – new content on undocumented accounts
    • 5.8 – new content on identification of an account as reportable
    • 5.12 – new content on payments to Non-Participating Financial Institutions – FATCA only
    • 5.13 – new content on currency reporting and related issues
    • 6 – new introduction to compliance chapter
    • 6.1 – revised content on failure to obtain a self-certification – CRS
    • 6.2 – new content on significant non-compliance – FATCA
    • 6.3 – new content on collaboration on compliance and enforcement – CRS
    • 6.4 – new content on anti-avoidance measures – CRS
    • 7 – new section on transitional arrangements
    • 9 – new table on updates to the AEOI guidance material in chronological order

    April 2017

    •  2.16 – new content on not-for-profit organisations as financial institutions
    • 3.16 – new content on Financial Accounts maintained by not-for-profits
    • 4.5 – revised content on due diligence for Lower Value Pre-existing Individual Accounts
    • 4.7 – revised content on self-certifications for new accounts
    • 4.9 – revised content on due diligence for pre-existing entity accounts
    • 4.10 – revised content on due diligence for New Entity Accounts
    • 4.14 – revised and new content on the validity and reasonableness of a self-certification
    • 4.15 – new content on the validity of documentary evidence
    • 4.16 – new content on finalising due diligence before reporting
    • 4.17 – new content on changes in circumstances
    • 4.18 – new content on the account balance aggregation rule
    • 4.19 – new content on CRS participating jurisdictions
    • 5.1 – revised content on Reportable Accounts
    • 6.5 – new content on undocumented accounts compliance

    July 2017

    • 4.19 – new jurisdictions added to list of CRS participating jurisdictions

    August 2017

    • 2.1 – revised content on when a trust may be an Australian financial institution
    • 4.19 – addition of Belize as a Participating Jurisdiction with effect from 7 August 2017

    November 2017

    • 2.3 – clarification of income attributable to holding financial assets
    • 2.8 – new content on the 'managed by' test
    • 4.11 – new content on settlors of trusts with Pre-existing Accounts
    • 5.6 – new content on reporting of payments to closed accounts
    • 6 – new content on record-keeping requirements
    • 7.1 – new content on reporting of U.S. TINs in FATCA reporting

    February 2018

    • 4.19 – revised list of Participating Jurisdictions

    November 2018

    • General revisions to reflect moving from initial implementation to ongoing obligations
    • 2.15 - added guidance for new qualified credit card issuers
    • 3.1 - new content for money transfer businesses
    • 3.2 - new content for temporary overpayment of credit cards
    • 3.5 - new content on equity interests in partnerships and trusts
    • 3.6 - revised content to focus on meaning of Financial Account
    • 4.11 - clarification of interaction between AML/KYC procedures and CRS due diligence
    • 4.14 - new content on residence and citizenship investment schemes
    • 5.5 - new content relating to hardship, and exceptional circumstances preventing access to TINs
    • 8 - new glossary of common terms

    March 2019

    • 4.19 – revised list of Participating Jurisdictions
    • 5.2 - new content relating to dual residents and tiebreaker rules

    August 2019

    • removed FAQs, merged content with main guidance
      Last modified: 29 Aug 2019QC 48683