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
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all