A new report is available from Hanrick Curran’s international alliance (Alliott Group), which outlines the basics of the Common Reporting Standard (CRS), what is happening across different jurisdictions and why expatriates need to pay attention to this Standard.
The report, published by Alliott Group, a leading international alliance of professional services firms, in which Hanrick Curran is the local affiliated member in Queensland, Australia, has Global Mobility tax experts commenting on how the Common Reporting Standard would affect expatriates across multiple jurisdictions, currently standing at a total of 101.
Jamie Towers, Hanrick Curran Tax Partner and Chairman of Alliott Group’s Asia Pacific region comments: “Information about assets held in different jurisdictions, as well as undeclared income generated by such assets, will soon become available to national governments as a result of the automatic exchange of this account information.”
There will be a great level of exchange of financial information between the 101 governments that have signed up to the CRS. Expatriates need to be aware that the country hey live in, if part of the CRS, will exchange financial information with the country they are a resident of. This initiative to exchange information is a move towards clamping down on tax evasion, putting an end to banking secrecy and to address the perceived leakage of tax to other jurisdictions. The 101 jurisdictions will begin automatically exchanging information by 2018 under CRS - an initial 54 jurisdictions have committed to sharing their 2016 calendar year information on an automatic basis by 30 June 2017, with the other 47 jurisdictions committed to a first CRS reporting in 2018.
Information in the report answers the types of questions handled on an almost daily basis by Alliott Group members, including:
- How will tax treaties be affected?
- What type of information will be collected and disclosed?
- Who is most likely to be affected by CRS?
- What are the risks posed by CRS?
- When does CRS come into effect and which
- How many days does a foreign individual need to spend in a different jurisdiction to be considered resident for tax purposes?
- When does CRS come into effect and which countries have signed up?
- What can expatriates do to ensure their compliance?
Achieving the right advice and solutions that ensure success is no longer the sole preserve of large corporates and the wealthiest individuals. The essential ingredients for successful market entry, such as local knowledge and connections, deep technical expertise, sector experience, speed to market, flexibility and economies of scale, are now accessible to ambitious small and medium sized businesses. Hanrick Curran is one of 170 Alliott member firms in 70 countries. Alliott Group’s aim is to be the alternative, ‘go to’ resource for businesses and private individuals focused on cross border business.
Australia will begin reporting to partners under CRS in September 2017. Australia has arrangements in place to receive information from 50 jurisdictions and send information to 41. We anticipate that further jurisdictions sending information to Australia will be added over the next 12 months. Australian expatriate workers will need to ensure they do not fail to make the proper tax declarations in Australia and the same goes for foreign tax residents living and working in our country - anyone who harbours doubts about the legitimacy of their current arrangements would be wise to have them checked by their professional advisers.
Jamie Towers tackles a number of the issues raised in the report on camera including where tax is to be paid when an Australian company operates internationally and the repatriation of profits for Australian companies with foreign income, to view these click here.
Hanrick Curran has a strong international business capability, advising many Australian clients with investments and business interests outside of Australia.
For assistance in managing worldwide taxation and superannuation obligations, or for further information in achieving your international expansion goals, speak with your usual Hanrick Curran adviser or alternatively, contact Jamie Towers on 07 3218 3900.
Click here to download the Common Reporting Standard Report.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.