Commonwealth of Australia Explanatory Memoranda

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TAX LAWS AMENDMENT (IMPLEMENTATION OF THE COMMON REPORTING STANDARD) BILL 2015

                    2013-2014-2015-2016



THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                          SENATE




TAX LAWS AMENDMENT (IMPLEMENTATION OF THE COMMON
           REPORTING STANDARD) BILL 2015




    SUPPLEMENTARY EXPLANATORY MEMORANDUM



      Amendment to be moved on behalf of the Government




              (Circulated by the authority of the
            Treasurer, the Hon Scott Morrison MP)
Table of contents

Glossary ................................................................................................. 1

General outline and financial impact....................................................... 3

Amendment to the Tax Laws Amendment (Implementation of
              the Common Reporting Standard) Bill 2015 ................. 5
Glossary
     The following abbreviations and acronyms are used throughout this
     explanatory memorandum.


              Abbreviation                         Definition
      Commissioner                 Commissioner of Taxation
      CRS                          Common Reporting Standard




                                                                         1
General outline and financial impact

Amendment to the Tax Laws Amendment (Implementation of
the Common Reporting Standard) Bill 2015
        This amendment (the Senate amendment) to the Tax Laws Amendment
        (Implementation of the Common Reporting Standard) Bill 2015 ensures
        that statements relating to Preexisting Individual Accounts that are High
        Value Accounts as of 30 June 2017 must be reported to the Commissioner
        by 31 July 2018.

        Date of effect: This amendment applies from 1 July 2017.

        Proposal announced: These amendments have not previously been
        announced.

        Financial impact: Nil. The amendments do not alter the financial impact
        as outlined in the explanatory memorandum to the Bill (a small but
        unquantifiable revenue gain).

        Human rights implications: None. The amendments do not raise any
        human rights issues.

        Compliance cost impact: Nil. The amendments do not alter the estimated
        annual compliance cost savings as outlined in the explanatory
        memorandum.




                                                                                  3
Amendment to the Tax Laws Amendment
(Implementation of the Common
Reporting Standard) Bill 2015

Outline of chapter
         1.1       This amendment (the Senate amendment) to the Tax Laws
         Amendment (Implementation) Bill 2015 ensures that statements relating
         to Preexisting Individual Accounts that are High Value Accounts as of
         30 June 2017 must be reported to the Commissioner by 31 July 2018.



Detailed explanation of new law
         1.2       The Senate amendment ensures that statements relating to
         Preexisting Individual Accounts that are High Value Accounts as of
         30 June 2017 must be reported to the Commissioner by 31 July 2018,
         regardless of whether the Reporting Financial Institution conducts its due
         diligence procedures of these accounts between 1 July 2017 to
         31 December 2017 or 1 January 2018 to 31 July 2018.




STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS


Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011

Amendment to the Tax Laws Amendment (Implementation of the
Common Reporting Standard) Bill 2015

         1.3       The Senate amendment to the Tax Laws Amendment
         (Implementation of the Common Reporting Standard) Bill 2015 is
         compatible with the human rights and freedoms recognised or declared in
         the international instruments listed in section 3 of the Human Rights
         (Parliamentary Scrutiny) Act 2011.




                                                                                      5
Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2015



Overview

            1.4       The Senate amendment to the Tax Laws Amendment
            (Implementation of the Common Reporting Standard) Bill 2015 provides
            that statements relating to Preexisting Individual Accounts that are High
            Value Accounts as of 30 June 2017 must be reported to the Commissioner
            by 31 July 2018.

Human rights implications

            1.5      The Senate amendment to this Bill does not engage any of the
            applicable rights or freedoms.

Conclusion

            1.6        The Senate amendment to this Bill is compatible with human
            rights as it does not raise any human rights issues.




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