Automatic Exchange of Foreign Tax Residency Information (FATCA & CRS)

Resolution Life Australia (Resolution Life) is committed to upholding our responsibilities to customers and our regulators. This includes that we comply with the reporting obligations under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) legislation.

Both of these relate to international tax transparency and the exchange of financial account information.

Under these legislations Resolution Life is required to ask customers about their tax details and about their local and overseas tax obligations.
We explain more about our tax compliance obligations and the legislation that applies below.  
 

Foreign Account Tax Compliance Act

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 obligation on Resolution Life to adhere to FATCA in Australia is driven by the Automatic exchange of information guidance – CRS and FATCA | Australian Taxation Office (ato.gov.au), and the supporting Australian legislation.
 

Common Reporting Standard

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 Resolution Life customers (individuals, business, trust, etc.) are subject to this legislation.
 

What does this mean for existing customers?

If you have an existing account or product with us, we may contact you if we have information to suggest that you are a foreign tax resident. We may also request your foreign tax residency status if you open a new account and have not previously advised us of your foreign tax residency status. Minor customers and their parents or guardians may also be contacted if they have not provided their foreign tax residency status.

It is important that you respond to any requests and confirm your tax residency status to ensure that your customer information is accurate, and that we don't inadvertently report incorrect information.    
 

Different information collection for FATCA and CRS

FATCA requires that Resolution Life ask you if you are a U.S. citizen or a U.S. tax resident. CRS requires Resolution Life to ask you about your foreign tax residency.

What is tax residency?

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 Resolution Life within 30 days of any change in circumstances that affects your tax residency status and to provide Resolution Life 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 Australian Taxation Office (ato.gov.au).
 

Our obligations to collect and share information

•    All new customers will be required to provide information about their tax residence when applying to open an account.
•    Existing Resolution Life customers may be required to provide information about their tax residence when requested by us.
 

Collecting and sharing foreign tax information

Customers who are foreign tax residents may be reported to ATO on an annual basis.

Collection and sharing of foreign tax information will be done in accordance with our Privacy Policy and we will only share information required to meet our statutory obligations.

How to provide your tax residency details

Login to My Resolution Life portal to provide your tax residency details and check your contact and address details are up to date.

If you haven’t used My Resolution Life portal before, you can register now.

What is my Tax Identification Number (TIN)?
A TIN is an identifying number or equivalent (e.g. social security number, personal identification number, national identification number) issued by a country of tax residency that is used for tax purposes. If you are unsure about your TIN, contact the relevant tax authority or your independent taxation advisor.

What if my tax jurisdiction(s) does not issue TINs or equivalents?
If you're a tax resident in a jurisdiction that doesn't issue a TIN or equivalent, you'll need to give evidence of this, written in English from an appropriate authority.

What are ‘beneficial owners and/or controlling persons’?
Beneficial Owner/Controlling Person refers to the individual(s) that directly or indirectly owns a legal interest in the entity of 25% or more and/or exercises actual effective control over the entity, whether from an economic or other perspective, such as through voting rights. In addition, in the case of a trust, a Beneficial Owner/Controlling Person includes the settlor(s), trustee(s), appointer(s), protector(s), beneficiary(ies) or classes of beneficiaries and in the case of an entity other than a trust, the term includes persons in equivalent or similar positions.

More information about CRS

More information on CRS can be found on the below sites:
•    International Standards for Automatic Exchange of Information in Tax Matters | OECD  
•    Centre for Tax Policy & Administration

If you need to get in touch with us, visit our Contact Us page for more details.