The Australian Taxation Office (ATO) requires financial institutions like ExtrasJar to send them information about our customers' investment and investment income. This requirement is crucial for ATO to identify people who may not be complying with their taxation obligations.
This article discloses all the information we report to ATO for full transparency to our customers.
Tax Residents of Other Countries - We must obtain details about any other countries where you are a resident for tax purposes (including your taxpayer identification number).
This is because the Fund may be required to report information about your investment (including investment balances and any payments made) to the ATO each year for provision to the relevant overseas tax authority under rules designed to combat tax evasion in that country.
We will determine whether the Fund is required to report your details to the ATO for this purpose based on our assessment of the relevant information received.
Foreign Account Tax Compliance Act (FATCA) - The United States of America has introduced rules (known as FATCA) which are intended to prevent US persons from avoiding tax. Broadly, the rules may require the Fund to report certain information to ATO, which may then pass the information on to the US Internal Revenue Service (IRS). If you do not provide this information, we will not be able to process your application.
To comply with these obligations, We will collect certain information about you and undertake certain due diligence procedures to verify your FATCA status and provide information to the ATO in relation to your financial information required by the ATO (if any) in respect of any investment in the Fund.
Common Reporting Standard - The Australian government has implemented the OECD Common Reporting Standards Automatic Exchange of Financial Account Information (CRS) from 1 July 2017.
CRS, like the FATCA regime, will require banks and other financial institutions to collect and report to the ATO. It will require certain financial institutions to report information regarding certain accounts to their local tax authority and follow related due diligence procedures
The Fund is expected to be a ‘Financial Institution’ under the CRS and intends to comply with its CRS obligations by obtaining and reporting information on relevant accounts (which may include your units in the Fund) to the ATO. For the Fund to comply with their obligations, we will request that you provide certain information and certifications to us.
We will determine whether the Fund is required to report your details to the ATO based on our assessment of the relevant information received. The ATO may provide this information to other jurisdictions that have signed the “CRS Competent Authority Agreement”, the multilateral framework agreement that provides the mechanism to facilitate the automatic exchange of information in accordance with the CRS. The Australian Government has enacted legislation to give effect to the CRS.
Goods and Services Tax (GST) - GST generally applies to the fees, costs, and expenses payable by the Fund, including management costs and other fees payable to us.
Generally, the Fund can’t claim credit for all of the GST paid but may be entitled to claim a reduced input tax credit (RITC), which represents a portion of the GST applicable to management costs and certain other expenses, as set out in the GST law.
Unless otherwise stated, the fees and costs in the 'Fees and costs summary’ table in section 6 of the Product Disclosure Statement show the approximate net cost to the Fund of these amounts payable to us, on the basis that the Fund is entitled to claim RITCs for the GST on relevant amounts.