The US and Australian governments have excluded SMSFs and superannuation from the US Foreign Account Tax Compliance Act (FATCA).
Earlier this week, the federal government announced it has entered into an intergovernmental agreement (IGA) with the US to "reduce the burden on Australian financial institutions" of complying with the US FATCA.
Treasurer Joe Hockey heralded ramifications for “a large part of the Australian financial services sector”.
However, the IGA will carve SMSFs out of the FATCA compliance net under the exemption for Australian superannuation entities, the SMSF Professionals’ Association of Australia’s senior manager for technical and policy, Jordan George, told SMSF Adviser.
“This means that any SMSFs that have a US citizen as a trustee/member or have US assets do not need to adhere to the strict FATCA reporting compliance which will save on compliance costs for trustees and their advisers,” he said.
“So trustees and advisers are in a position where they do not have to do anything because of the agreement.”
AMP SMSF’s head of policy and technical, Peter Burgess, also noted on Twitter that this carve out should mean there are no extra reporting obligations for SMSFs.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all