Australia is part of the Automatic Exchange of Information (AEOI), an international agreement which allows the exchange of tax information with other countries.
BCU Bank is required by Australian law to identify customers who may be a tax resident of another country and report certain information annually to the Australian Taxation Office (ATO).
The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS), which focus on the exchange of account holder information, are the most commonly recognised.
Foreign Account Tax Compliance Act (FATCA)
FACTA is legislation introduced by the United States Government to improve compliance with US tax laws.
BCU is required to identify any accounts opened by customers who meet certain eligibility criteria. Information about these identified accounts will be reported to the ATO which will submit the information to the US Internal Revenue Service (IRS) on an annual basis.
This will only impact customers identified as US residents, or those whose residency cannot be identified due to insufficient information provided.
Common Reporting Standard (CRS)
CRS is a global standard for the collection and exchange of account information. If you are a foreign tax resident, you will be required to certify your residence for tax purposes and provide your tax identification number.
BCU is required to report certain information annually to the ATO which will then exchange this with the tax authority of the relevant country.
Frequently asked Questions
What is a Foreign Tax Certificate?
A Foreign Tax Certificate contains the information needed by BCU to meet our reporting obligations.
What happens if I don’t provide the requested information?
If you do not you have failed to respond to requests for confirmation, BCU is obliged to report certain information annually to the ATO which will then exchange this with the tax authority of the relevant country.
Accounts of customers who fail to respond to requests for information may be restricted.
We may also contact you from time to time to confirm your tax residency and request additional information/documentation for support. It is advisable to let us know if, or when, your situation changes.
I’m not a foreign tax resident, do I have to complete a Foreign Tax Certificate?
Even if you’re not a foreign tax resident, you should still complete the form so we can update your details.
Where can I get more Information?
Visit the ATO website for more information.