Australia & Singapore Now Share Financial Data to Fight Tax Evasion | Glint Accountants

Australia & Singapore Now Share Financial Data to Fight Tax Evasion

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The Australian Taxation Office (ATO) and The Inland Revenue Authority of Singapore (IRAS) entered into a Competent Authority Agreement (“Agreement”) on the automatic exchange of financial account information based on the Common Reporting Standard which commenced in 2018.

Under this Agreement, IRAS will automatically exchange with the ATO, financial account information of accounts in Singapore held by Australian tax residents while the ATO will automatically exchange with IRAS, financial account information of accounts in Australia held by Singapore tax residents.

In doing so, Australia and Singapore have enhanced cooperation to support greater tax transparency and fight against tax evasion.

Against this backdrop, banks and financial institutions are required to report transfers of $10,000 and over to AUSTRAC in a threshold transaction report (TTR) within 10 business days.

Singapore-Australia Digital Economy Agreement:

https://www.dfat.gov.au/trade/services-and-digital-trade/Pages/australia-and-singapore-digital-economy-agreement

IRAS Media Release:

https://www.iras.gov.sg/irashome/News-and-Events/Newsroom/Media-Releases-and-Speeches/Media-Releases/2016/Singapore-and-Australia-to-Share-Data-to-Reduce-Tax-Evasion/

AUSTRAC Link:

https://www.austrac.gov.au/business/how-comply-guidance-and-resources/reporting/cash-transactions-over-10000-ttr

What does this mean for Australians with investments in Singapore or Singaporeans residing in Australia?

What this means for Australian residents with investments in Singapore and Singapore residents with investments in Australia is that there is additional data now available to both IRAS and ATO. If you are an Australian tax resident, you are subject to Australian taxes on income earned worldwide, including Singapore. You can’t no longer hide your foreign income or overseas assets from the ATO!

How may Glint Accountants help those with income or assets in Singapore?

Contact us if you are concerned about one or more of the following,

  • Tax implications of the transfer of CPF funds to Australia
  • Australian taxes on rental properties in Singapore
  • Capital gains taxes implications on the sale of HDB flats or other Singapore properties after moving to Australia

We would more than happy to explain the 6-month rule, the 6-year rule and the other taxation topics, such as, taxation on worldwide income earned by Australian tax residents.

Disclaimer: This blog post has been simplified to cover the main points of the Competent Authority Agreement between Australia and Singapore. This should not be construed as advice from Glint Accountants. There are many other factors to be considered and each person’s situation is unique. Therefore, we encourage readers of this blog post to contact Glint Accountants for assistance with their specific circumstances.

Geraldine Lee, Glint Accountants

Geraldine Lee is a Chartered Accountant in Singapore and a Fellow of CPA Australia. Contact us at Glint Accountants for assistance if you are migrating from Singapore to Australia or a recent migrant from Singapore, and require advice about CPF, capital gain taxes on sale of Singapore properties (HDB flats, condos and other private properties), and so on.


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