The Australian Government has committed to a new global standard on the automatic exchange of financial account information. Their aim is to cut down on tax evasion by sharing information about foreign tax residents with other tax authorities. This requires financial institutions from around the world, including the Commonwealth Bank group, to collect tax residency information from their customers. This is known as the Common Reporting Standard (CRS) and it follows on from the Foreign Account Tax Compliance Act (FATCA).
CRS requires us to capture tax residency information for customers before they open an account. We also need to review existing accounts and monitor changes to customer information for indicators that the customer might be a tax resident in another country. If we think we need further information from you, we will contact you asking you to complete our Tax Residency Self-Certification Form.
This short video explains why we are collecting Tax Identification Numbers (TINs) from customers and provides examples of TINs from some of the countries where our customers may have foreign tax residency.