Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I am delighted, almost brimming with surprise and delight, to be able to provide the summing-up speech for the Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2015 and to warmly thank all of those senators who, I have no doubt, have made extremely valuable, thoughtful and detailed contributions to this debate that I have been studying very closely.

This bill implements the Common Reporting Standard for the automatic exchange of financial account information. Globalisation and technological advances have made it easier for taxpayers to hold investments in financial institutions outside of their jurisdiction of residence, increasing the opportunities for international tax evasion. The standard tackles this type of tax evasion, improving the integrity of the tax system. Financial institutions will be required to collect financial account information of foreign residents and report it to the Australian Taxation Office for transmission to other jurisdictions' tax authorities. In exchange, the Australian Taxation Office will receive information on Australians with offshore accounts. It will use the information to ensure that they are complying with their domestic tax obligations. Over 95 jurisdictions have committed to implement the standard, including former tax secrecy jurisdictions such as Luxembourg, Switzerland, the British Virgin Islands, the Cayman Islands, the Isle of Man, Guernsey and Jersey. I commend this bill to the Senate and look forward to its passage.

Question agreed to.

Bill read a second time.