Foreign Tax Liability

What is CRS?

CRS is an acronym which stands for Common Reporting Standard. CRS was introduced by the Organisation for Economic Co-operation and Development (OECD) for automatic exchange of financial information in tax matters.

The Common Reporting Standard is the single global standard for the collection, reporting and exchange of financial account information on foreign tax residents.

On 3 June 2015, Australia subscribed to international OECD CRS convention and passed legislation through the Australian Federal Parliament in 2016 giving domestic effect to the requirements.

Banks and other financial institutions will collect and report to the Australian Taxation Office (ATO) financial account information on foreign residents for tax purposes. The ATO will exchange this information with the participating foreign tax authorities and, in parallel, will receive information on Australian residents.

In certain circumstances Suncorp Bank may be required to provide certain information about your foreign tax status and your accounts to the ATO who may then share your information with other foreign tax authorities.

The OECD CRS regime is separate to the United States (US) Foreign Account Tax Compliance Act (FATCA) regime. While the requirements are similar, Suncorp Bank is required to comply with both regimes. For more information on FATCA requirements, please refer to the FATCA FAQ.

What is the purpose of CRS?

Financial institutions report information to the tax administration authority in the jurisdiction in which they are located. The tax administration authority may then exchange that information with a foreign subscribing tax authority, as required under the CRS. The reciprocal exchange of information between international tax authorities will assist in addressing offshore tax evasion and other forms of non-compliance.

Is Suncorp Bank registered for CRS?

No. As a Reportable Financial Institution, Suncorp automatically falls within scope of the CRS requirements (without the need to register). This requirement arises under Australian law, therefore, there is no requirement to register.

Separately, Suncorp Bank and its related entities are registered under FATCA and have received Global Intermediary Identification Numbers (GIINs). Find out more, including our GIIN, by following the hyperlink.

What is the impact of CRS?

Suncorp Bank is required by law to identify our customers’ foreign tax liability status. We are also required by law to annually report information on financial accounts held directly or indirectly by foreign residents for tax purposes.

Suncorp Bank may contact you for further information or documentation. Suncorp Bank may also ask all new to bank customers questions concerning their foreign tax liability status.

Is CRS a one-off requirement?

No, CRS is an ongoing compliance obligation for Suncorp Bank. Suncorp Bank’s reporting obligations under the legislation require us to report to the ATO on accounts held by all foreign residents for tax purposes.

Who does CRS apply to?

CRS will generally impact both personal and business customers who:

hold deposit products and in some cases lending products; and
are foreign residents for tax purposes or are controlled by a foreign resident.

However, CRS is far reaching and other customers may also be impacted. Please seek your own tax advice if you are unsure how you or your business may be impacted by CRS.

Which countries are participating jurisdictions for CRS?

Over 90 jurisdictions have now committed to implement the Common Reporting Standard to start exchanging information in 2017 or 2018.

For a list of countries committed to CRS, refer to the Commitment and Monitoring section of the OECD CRS website, or download Status of Commitments for Automatic Exchange of Information (pdf).

However, we are required by law to collect customers’ foreign tax status information and report to the ATO even if the foreign country of the customer is not contained on the above list.

What if I don’t want to disclose my tax status?

Suncorp Bank is required to report on its customers based on the information and documentation in its possession. This is also an opportunity for customers to update their personal details held by Suncorp Bank.

If you choose not to provide Suncorp Bank the required information under the CRS regime, we may not be able to open your account, may have to restrict access to your account or may report your account information to the ATO (who may then share this with other foreign tax authorities). Is Suncorp Bank the only bank to be affected by CRS?

No, most Australian banks and some other financial institutions are required to comply with CRS. However, each institution’s approach to adopting and complying with the requirements of CRS may differ.

Why has my other bank asked me to complete different documentation?

You may be asked for different documentation from Suncorp Bank than from another bank. The way other banks and/or other financial institutions request customers to confirm their tax status for CRS may vary.

What do I need to do if I am an affected customer?

If you haven’t received a letter and would like to notify Suncorp Bank of your foreign tax liability status, please complete:

the Self Certification Declaration – Individuals. This form is only to be used by individuals; and/or
the Self Certification Declaration – Entities. This form is only to be used by Entities and their relevant Controlling Persons.

The completed form/s can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

Please note that you may receive more than one request for documentation if you have multiple relationships with different members of the Suncorp Group. It is important that you respond to all requests, even if you believe you have already supplied the information requested.

What is a Taxpayer Identification Number (“TIN”)?

A TIN is an identifying number used for tax purposes to deal with the tax administration in the foreign country.

For example, Australia’s relevant TIN would include our Tax File Number (TFN) which we normally quote when completing our annual tax returns. Most foreign countries will have an equivalent functional tax identification number.

The OECD has issued guidance on TINs for foreign countries, viewable here. If you are unsure what your TIN is, please contact your tax adviser for further guidance.

What information is passed on to the ATO?

Suncorp Bank may need to pass on personal and financial information to the ATO including account name, address, date of birth, TIN, foreign tax residency status, account number, account balance and all amounts paid into the account during the year.

Suncorp Bank will only report the specified information that is required under law. Your information is otherwise protected in accordance with our Privacy Policy.

What other parties will receive my information?

The ATO will receive your personal information from us and then pass this information to the foreign tax authority in accordance with the relevant laws.

Does CRS only apply to new accounts?

Initially from 1 July 2017 the CRS will only apply to new accounts but within the following months the CRS may impact all customers. All new and some pre-existing customers will be required to provide information to Suncorp Bank concerning their foreign tax liability status.

Will Suncorp Bank stop accepting foreign resident customers due to CRS?

No. Foreign residents remain welcome to open accounts with Suncorp Bank provided they are willing to comply with and disclose the relevant information required for CRS reporting.

Who can I contact for more information about CRS?

If you are unsure, you should seek advice from a lawyer or tax adviser. Suncorp Bank cannot provide you with any legal or tax advice.

http://www.ato.gov.au

Please refer to the Suncorp Group Privacy Statement. If you need further assistance, please call Suncorp Bank on 13 11 55.

Does CRS apply to me?

CRS may apply to you if:

your country of residence lies in a foreign country and you spend a significant number of days in a foreign country;
you pay tax in a foreign country;
you have previously paid tax in a foreign country; or
you should pay tax in a foreign country.

Foreign tax residency is determined by the foreign country’s laws and will differ on a country-by-country basis. If you are unsure whether you are a foreign tax resident, please contact your lawyer or tax adviser for assistance. We are unable to give you advice in regards to your foreign tax residency status.

I am not a foreign resident or citizen so why have I been contacted?

Suncorp Bank is required by law to obtain a certification from its customers to determine their foreign tax liability status. In the course of an application or during another interaction with us you have given us some information which indicates you may be foreign tax liable. In this case Suncorp Bank may be required to request further information or documentation to determine if you are a foreign tax resident for CRS purposes.

If you have received a self-certification declaration, it is important you respond to the request within the timeframe provided otherwise we may not be able to open your account or may have to restrict access to it.

I am not a foreign citizen or resident but I have a power of attorney (or equivalent) on my account who is a foreign citizen. How does this affect me?

Granting a power of attorney or signatory authority to a foreign resident for tax purposes or a person who has indicators of being a foreign resident for tax purposes, may mean that you will receive a self-certification declaration. Your account may be included in our CRS reporting obligations.

What happens if only one account holder of a joint account is a foreign resident for tax purposes?

A joint account with one owner who may be a foreign resident for tax purposes falls within the scope of the CRS reporting and therefore, you may be required to complete a self-certification form.

I have an account in foreign currency. Does this mean my account is subject to CRS?

No, merely holding an account in foreign currency is not relevant for CRS requirements. CRS is dependent on foreign tax residency, not foreign currency.

What do I need to do if I have been contacted but am not a foreign resident for tax purposes in accordance with the CRS regime?

If you have been contacted regarding CRS and you believe CRS does not apply to you then please complete the self-certification declaration which was mailed to you and email it to us at FatCa@suncorp.com.au or send back to us at the following reply paid address (note no postage stamp is required):

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

If you have misplaced the letter that was mailed to you, you can download a Self Certification Declaration – Individual. This form is only to be used by individuals.

Why is it important that I comply?

If you have been identified by Suncorp Bank as a foreign resident for tax purposes and do not provide us with the required information within the specified timeframe, we may not be able to open your account or may have to restrict access to it or we may be obliged to report your information to the ATO (who may then pass this information on to the foreign tax authority). If information or self-certification provided to us is incorrect or defective, we may also be obliged to report your information to the ATO.

How frequently will I have to provide information for CRS purposes?

CRS is an ongoing process. We may be required to obtain additional information or documentation to enable us to update your CRS status from time to time.

If your circumstances change you must complete the Self Certification Declaration – Individuals. This form is only to be used by individuals. The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

What types of information and/or documents can I expect to supply to Suncorp Bank?

We are required to collect Tax Identification Numbers (“TIN”) for CRS purposes, and other personal details such as name, address and date of birth. You may wish to download a Self Certification Declaration - Individuals. This form is only to be used by individuals.

How would I provide this information to Suncorp Bank?

If Suncorp Bank requires further information from you, we will provide you with the relevant forms. Alternatively, you may wish to download the Self Certification Declaration – Individuals to confirm your foreign tax liability status.

When would I need to provide this information to Suncorp Bank?

If you are notified by Suncorp Bank to provide us with additional information, we will specify a response timeframe.

Until you provide us with the additional information we may not be able to open your account or may have to restrict access to it.

Does CRS replace existing tax rules that I already follow?

CRS does not replace the existing tax regimes. However, it may add additional requirements and complexity to the existing tax rules you may already follow. We recommend you contact a tax adviser to discuss your personal tax situation.

I haven’t been contacted by Suncorp Bank but would like to confirm my foreign tax residency status, what do I do?

If you haven’t received a letter and believe you are a foreign tax resident you will need to notify Suncorp Bank of your foreign tax residency status by completing the Self Certification Declaration – Individuals. This form is only to be used by individuals. The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

I have lost the letter that was sent to me, what do I do?

If you have misplaced the letter that was mailed to you simply download our Self Certification Declaration – Individuals (for individuals only). The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

Can you give me advice on how to respond to Suncorp Bank’s CRS requests?

While we can provide general information on CRS, Suncorp Bank cannot provide you with any legal or tax advice. If you are unsure, you should seek advice from a lawyer or tax adviser.

Does CRS apply to me?

Suncorp Bank is required to certify all customers foreign tax residency status. Foreign tax residency is determined by the foreign country’s laws and will differ on a country-by-country basis. This may depend on your country of incorporation or where effective management and control of your entity is located, but should be confirmed in accordance with each applicable foreign country’s laws.

If you are unsure whether you are a foreign resident for tax purposes, please contact your lawyer or tax adviser for assistance. We are unable to give you advice in regards to your foreign tax liability status.

What is my CRS status?

You will need to select your CRS status from the list available on our Self Certification Declaration – Entities.

A brief description of these entity classifications is set out below. This is only an overview - for the full definitions please refer to the CRS which can be found at Part II(B) of the OECD’s Standard for Automatic Exchange of Financial Account Information in Tax Matters.

Financial Institution - Depository Institution, Custodial Institution, Specified Insurance Company or Investment Entity (other than an Investment Entity located in Non-Participating Jurisdiction and managed by another Financial Institution)
Custodial Institution – that conducts a substantial business of holding financial assets for others;
Depository Institution – a bank or similar business that accepts deposits in the ordinary course of business;
Investment entity – that conducts (or is managed by an entity that conducts):
- Money market trading
- Portfolio management
- Investing, administering or managing funds or money as a business on behalf of a customer (e.g. responsible entities for managed funds, professional fund managers)
Specified insurance company – issues a cash value insurance contract or annuity.
A Financial Institution does not include small personally managed investment vehicles such as family trusts and personal investment companies that are not managed by professional trustees or fund managers.
Investment Entity located in a Non-Participating Jurisdiction and managed by another Financial Institution
An Investment Entity (see above description) located in a jurisdiction which is not a signatory to the CRS and is managed by another Financial Institution.;
Active Non-Financial Entity being a Corporation, the stock of which is regularly traded on an established securities market or a related entity of such a corporation
This may include publicly listed companies that are listed on the Australian Securities Exchange or its foreign equivalents;
Active Non-Financial Entity – a Government Entity or Central Bank
This may include all government entities, including all federal, state and local governments and the Reserve Bank and its wholly owned subsidiaries;
Active Non-Financial Entity – an International Organization
Typically, this will include international organisations comprised of foreign governments and organisations that hold income not for the benefit of private persons – may include, for example – The United Nations, International Committee of the Red Cross, Interpol etc;
Active Non-Financial Entity – other than the above
less than 50% of the NFE’s gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50% of the assets held by the NFE during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income;
holding NFEs that are members of a nonfinancial group;
start-up NFEs;
NFEs that are liquidating or emerging from bankruptcy or a reorganisation;
treasury centres that are members of a nonfinancial group; or
non-profit NFEs.
Passive Non-Financial Entity –
A Passive NFE is a Non-Financial Entity that is not an Active Non-Financial Entity (see above) or an Investment Entity in a jurisdiction not signatory to the CRS and managed by another Financial Institution (also see above).

Please note that your CRS status may depend on your specific circumstances and may differ slightly from the above examples. If you are unsure of your relevant entity classification, you should contact your tax adviser or lawyer.

What do I need to do as a Suncorp Bank business customer?

To establish your CRS status, Suncorp Bank will ask you some preliminary questions during the product application process. If necessary we may then require you to provide additional information and documentation. This may include completing and returning the Suncorp Bank Self Certification Declaration – Entities.

Am I only affected if I am a foreign established entity?

No. CRS may also apply to certain entities with foreign owners, trustees, beneficiaries, partners, directors or other foreign controlling persons.

Am I exempt from CRS?

Some superannuation funds (including SMSFs), certain government organisations and certain investment entities are exempt from CRS reporting requirements. However, Suncorp Bank may contact entities which fall within these categories to complete a Suncorp Bank Self Certification Declaration – Entities to confirm their status.

How frequently will I have to provide information for CRS purposes?

CRS is an ongoing process. While we will make enquiries upon application for a new product, we may be required to obtain additional information or documentation to enable us to update your CRS status from time to time.

If your circumstances change, you must complete the Self Certification Declaration – Entities. This form is only to be used by non-individual customers. The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

How do I know where my place of incorporation or organisation is?

You may be able to find this information in the formation or establishing documents, constitution or the articles of incorporation of the entity.

What is my Tax Identification Number (“TIN”)?

Generally, an entity’s TIN is the unique identifying number issued by the relevant tax authority to identify their taxpayers. In Australia, this would be the Tax File Number (TFN) – with most foreign countries issuing a functional equivalent.

The OECD has issued guidance on TINs for foreign countries, viewable here. If you are unsure what your TIN is, please contact your tax adviser for further guidance.

What is a Global Intermediary Identification Number (GIIN)?

Under FATCA, some Foreign Financial Institutions (FFI) will be issued with a GIIN following their registration with the Internal Revenue Service (IRS) in the US. This may be required to be stated on the FATCA self-certification form.

There are no registration requirements under CRS, therefore, Financial Institutions will not be issued a GIIN for CRS purposes.

Who is a Controlling Person?

A controlling person refers to any natural foreign citizen or resident for tax purposes who has the ability to exercise control over an entity.

For a corporation, a controlling person may include:

Directors;
Senior management; and
Shareholders who holds a controlling interest, typically about 25% of the entity’s total shareholding

For a trust, a controlling person may include:

The settlor;
The trustees;
The protector (if any);
The beneficiaries or a class of beneficiaries; and
Any other natural person who exercises effective control over the trust.

For other entities, a controlling person may include:

Partners in a partnership; and
Any other natural person who exercises ultimate control over the entity.

Why do I need to provide information about Controlling Persons?

CRS is intended to increase transparency with respect to foreign persons that may be investing and earning income through institutions and entities outside their own country. Accordingly, CRS looks through corporate structures, including companies, to determine who has the capacity to control the entity and whether that person is a foreign citizen or foreign resident for tax purposes.

What do I need to do if I have been contacted but I do not think CRS applies to the entity?

If you have been contacted regarding CRS and you believe CRS does not apply to the entity, then please complete the self-certification declaration which was mailed to you and email FatCa@suncorp.com.au or send it back to us at the following reply paid address (note no postage stamp is required):

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

If you have misplaced the letter which was mailed to you, you can download a Self Certification Declaration – Entities. This form is only to be used by non-individual customers.

Why is it important that I comply?

If you have been identified by Suncorp Bank as impacted under CRS or Suncorp Bank is unable to determine whether your entity is impacted under CRS and you do not provide us with the required information within the specified timeframe, we may not be able to open your account, may have to restrict access to it or may be obliged to report your information to the ATO (who will pass this information on to the tax authority in the foreign country).

What types of information and/or documents can I expect to supply to Suncorp Bank?

We will be communicating with customers to provide full details of the information and documentation Suncorp Bank needs for CRS purposes.

This may include completing a Self Certification Declaration - Entities form. This form is only to be used by non-individual customers.

How would I provide this information to Suncorp Bank?

If Suncorp Bank requires further information from you we will send you the relevant forms. Alternatively, you may wish to download a form to confirm your foreign tax status.

When would I need to provide this information to Suncorp Bank?

If you are notified by Suncorp Bank to provide us with additional information, we will specify a response timeframe.

Until you provide us with the additional information we may not be able to open your account or may have to restrict access to it.

Does CRS replace existing tax rules that I already follow?

CRS does not replace the existing tax regimes. However, it may add additional requirements and complexity to the existing tax rules you may already follow. We recommend you contact a professional tax adviser or lawyer to discuss your situation.

I haven’t been contacted by Suncorp but would like to confirm my foreign tax status, what do I do?

If you haven’t received a letter from us and your foreign tax status or information has changed since your last interaction with us you must complete the Self Certification Declaration – Entities. This form is only to be used by non-individual customers. The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

I have lost the letter that was sent to me, what do I do?

If you have misplaced the letter which was mailed to you simply download our Self Certification Declaration – Entities (for non-individual customers only). The completed form can be emailed to FatCa@suncorp.com.au or mailed to:

Suncorp-Metway Ltd
IPC 4BK230
Reply Paid 1453
BRISBANE QLD 4001

Can you give me advice on how to respond to Suncorp’s CRS requests?

While we can provide general information on CRS, Suncorp Bank cannot provide you with any legal or tax advice. If you are unsure, you should seek advice from a lawyer or tax adviser.