Key Documents
On 28 April 2014 the Treasurer on behalf of the Australian Government, signed an intergovernmental agreement with the Government of the United States of America to improve international tax compliance and implement FATCA (Foreign Account Tax Compliance Act). FATCA was enacted by the US Congress to detect US taxpayers who use accounts with offshore financial institutions to conceal income from the US Internal Revenue Service (IRS).
The Government has developed draft legislation to give effect to Australia’s obligations under this agreement.
With effect from 1 July 2014, these amendments will require Australian financial institutions to collect information about their customers who are likely to be taxpayers in the United States of America and to provide that information to the Commissioner of Taxation who will, in turn provide that information to the IRS.