United States, Australia begin discussions for FATCA intergovernmental agreement 

November 8:   Representatives of the United States and Australia have started formal discussions for an intergovernmental agreement to address the effects of the U.S. Foreign Account Tax Compliance Act (FATCA) provisions on taxpayers in Australia.

According to a November 7 release from the Australian Treasury, an intergovernmental agreement would:


  • Address certain due diligence and reporting obligations on foreign (non-U.S.) financial institutions including Australian institutions under FATCA
  • Be intended to reduce the overall burden of FATCA on Australian business
  • Improve existing reciprocal tax information sharing arrangements between the Australian Taxation Office and the IRS

The Australian government stated that it will continue to work with Australian stakeholders so that their interests are reflected in discussions with the U.S. Treasury and that there are appropriate safeguards in any future bilateral arrangements to protect the legitimate interests of Australian citizens.


The announcement also states that Australia officials have been actively engaged with the United States to address the compliance impact of FATCA on Australian institutions, and will continue this effort over the coming months.



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©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.