The Australian Taxation Office (ATO) this week shared details of over 30,000 financial accounts worth over $5 billion are being provided to the US under the new powers of the US Foreign Account Tax Compliance Act (FATCA).
The information provided to the Untied States IRS was on US citizens and tax residents with Australian bank accounts. The ATO said it is the first step in a wave of transparency measures being implemented globally by Governments and tax administrations. Beginning in 2017, close to 100 countries will be sharing non-resident data under the OECD Common Reporting Standard (CRS).
In return the ATO will receive data from the IRS about Australians with financial accounts in the US and will use that data to detect cases of undeclared offshore income and tax evasion.
The ATO said the automatic exchange of financial account information is the “new international standard to eliminate tax evasion”. The ATO is committed to ensuring that taxpayers are disclosing their offshore income and in 2017 will implement the CRS, under which it will exchange financial account information with almost 100 countries.