Supplementary Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon Scott Morrison MP)Glossary
The following abbreviations and acronyms are used throughout this explanatory memorandum.
| Abbreviation | Definition |
| Commissioner | Commissioner of Taxation |
| CRS | Common Reporting Standard |
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.
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.
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.