Personal | Important Information | Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) Statement
Foreign Account Tax Compliance Act (FATCA) and Common Reporting
Standard (CRS) Statement
Under the Taxation Administration Act (1953), CDF is required to ask customers about their tax details. CDF will ask you questions about your local and overseas tax obligations.
The Foreign Account Tax Compliance Act (FATCA) is legislation aimed at preventing tax evasion by U.S. persons (individuals and entities. All non - U.S. Financial Institutions (FFIs) are required to identify and report financial accounts held by U.S. citizens or U.S. residents to the U.S. Internal Revenue Service (IRS). Many countries, including Australia, have entered into inter-governmental agreements (IGA) with the U.S., to enable FFIs in these jurisdictions to comply with FATCA under their local legislation, thus leveraging and improving existing tax information sharing arrangements between the IRS and the relevant local tax authorities.
The Common Reporting Standard (CRS) is an international initiative involving over 100 countries to the exchange of information on accounts held by non-resident individuals and entities with the tax authorities in their respective countries of tax residency.
To comply with CRS, banks and other financial institutions are required to collect foreign tax residency information from their customers. The aim of this legislation is to promote a reduction in offshore tax evasion. All participating countries, which includes Australia, are required to identify, and report foreign account holding information to their local tax authority which will be disclosed to the relevant foreign tax authorities.
All CDF customers (individuals, business, trust, etc.) are subject to this legislation.
Foreign tax residency is determined by the rules of each participating country’s taxation laws. It is important that your tax residency information is correct, complete, and not misleading.
This includes, ensuring you advise CDF within 30 days of any change in circumstances that affects your tax residency status and to provide CDF with an updated self-certification within 30 days of such change in circumstances.
Under local legislation, severe penalties may apply for providing false or misleading information.
For more information, we suggest you contact your tax adviser or refer to the ATO Website https://www.ato.gov.au/
CDPF Limited, a company established by the Australian Catholic Bishops Conference, has indemnified the CDF Community Fund ABN 94 380 397 118 (the Fund) against any liability arising out of a claim by investors in the Fund. In practice, this means your investment is backed by the assets of Catholic Archdiocese of Melbourne. The Fund is required by law to make the following disclosure: Investment in the Fund is only intended to attract investors whose primary purpose for making their investment is to support the charitable purposes of the Fund. Investor’s funds will be used to generate a return to the Fund that will be applied to further the charitable works of the Catholic Church. The Fund is not prudentially supervised by the Australian Prudential Regulation Authority nor has it been examined or approved by the Australian Securities and Investments Commission (ASIC). An investor in the Fund will not receive the benefit of the financial claims scheme or the depositor protection provisions in the Banking Act 1959 (Cth). The investments that the Fund offers are not subject to the usual protections for investors under the Corporations Act (Cth) or regulation by ASIC. Investors may be unable to get some or all of their money back when the investor expects or at all and investments in the Fund are not comparable to investments with banks, finance companies or fund managers. The Fund’s identification statement may be viewed here or by contacting the Fund. The Fund does not hold an Australian Financial Services Licence. The Fund has entered into an intermediary authorisation with CDFCF AFSL Limited ABN 49 622 976 747, AFSL No. 504202 to issue and deal in debentures.
