Similarly, for accounts in place at the time of the start of the IRS, the general obligation is that financial institutions be required to use the information they have to determine whether the account holder`s information should be reported, unless it is cured by the account holder. If the person is in turn established in a different jurisdiction, the details of the account must be communicated to the ATO, whether or not that jurisdiction is accepted by the IRS. We will exchange this information with other legal systems once they have adopted the IRS and an exchange agreement is in effect, either under the MCAA or as part of a bilateral agreement and agreement. Automatic exchange under the convention requires an administrative agreement between the ATO and the tax authorities of other countries. On June 3, 2015, Australia signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA), which is based on Article 6 of the convention. This agreement facilitates the implementation of the IRS on a multilateral basis and has been signed to date by more than 100 jurisdictions. The MCAA provides a framework for the bilateral exchange of information with other signatories. Australia and the United States have signed an intergovernmental agreement on the implementation of FATCA (FATCA agreement). On 16 September 2015, the competent authorities of Australia and the United States signed an agreement on the competent authority to obtain measures to assist in the implementation of the FATCA provisions.
For accounts opened after the start of the CRS, the financial institution is generally required to ask the person opening the account to obtain a tax certificate. If the person has a tax residence in another jurisdiction, whether or not that jurisdiction is accepted by the IRS, the details of the account must be disclosed to the ATO. We will in turn exchange this information with other legal systems, but only if they have adopted the IRS and if an exchange agreement is in effect, either under the MCAA or as part of a bilateral agreement and agreement.