Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016 (23 of 2016)

Schedule 1   Common Reporting Standard

Part 1   Main amendments

Taxation Administration Act 1953

15   Transitional provisions

Participating Jurisdiction Financial Institutions

(1) For the purposes of applying subparagraph D(2) of Section V and subparagraph A(2) of Section VI of the CRS under Schedule 1 to the Taxation Administration Act 1953 (as amended by this Part), a Financial Institution (within the meaning of the CRS) that:

(a) is an Investment Entity (within the meaning of the CRS) because of subparagraph A(6)(b) of Section VIII of the CRS; and

(b) is not a Participating Jurisdiction Financial Institution (within the meaning of the CRS); and

(c) would be a Participating Jurisdiction Financial Institution if the jurisdictions declared to be committed jurisdictions under subitem (2) were Participating Jurisdictions (within the meaning of the CRS);

is taken not to be a Passive NFE (within the meaning of the CRS) during the period from 1 July 2017 to 31 December 2017, and during the whole of 2018 and 2019.

(2) The Commissioner may, by legislative instrument, declare one or more jurisdictions (within the meaning of the CRS) to be committed jurisdictions.

High Value Accounts

(2A) For the purposes of subsections 396-105(1) and (2) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Schedule, an account maintained by a Reporting Financial Institution on 1 July 2017 is treated as being a Reportable Account (within the meaning of the CRS) on that day if the account:

(a) would be a Reportable Account (within the meaning of the CRS) on that day if the Reporting Financial Institution applied the due diligence procedures described in the CRS in relation to the account on or before that day; and

(b) is a High Value Account (within the meaning of the CRS) on 30 June 2017.

Preexisting Entity Accounts

(2B) For the purposes of subsections 396-105(1) and (2) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Schedule, an account maintained by a Reporting Financial Institution on 1 July 2017 is treated as being a Reportable Account (within the meaning of the CRS) on that day if the account:

(a) would be a Reportable Account (within the meaning of the CRS) on that day if the Reporting Financial Institution applied the due diligence procedures described in the CRS in relation to the account on or before that day; and

(b) is a Preexisting Entity Account (within the meaning of the CRS).

Statements

(3) Despite subsection 396-105(6) in Schedule 1 to the Taxation Administration Act 1953, to the extent that a statement under subsection 396-105(2) in that Schedule for 2017 relates to an account that is a Lower Value Account (within the meaning of the CRS), the statement must be given to the Commissioner no later than 31 July 2019.

Note: Section 388-55 in that Schedule allows the Commissioner to defer the time for giving an approved form.

(4) For the purpose of subitem (2A), (2B) or (3), subsections 396-120(2) to (8) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Part, apply in determining the meaning of a term used in that subitem.