United States Foreign Account Tax Compliance Act (FATCA)
Common questions about FATCA
Q. What is FATCA and how does it affect me?
A. The Foreign Account Tax Compliance Act (FATCA) is a United States (US) tax law aimed at financial institutions and other financial intermediaries to prevent tax evasion by US citizens and US tax residents through use of non-US investments or accounts. The FATCA provisions were included in the US HIRE Act which was signed into US law on 18 March 2010. Australia has entered into an intergovernmental agreement (IGA) with the US to implement FATCA in Australia, via the Australian Taxation Administration Act 1953 (Cth), which is to be to be administered by the Australian Taxation Office (ATO). Under the IGA, Reporting Australian Financial Institutions will have identification and reporting obligations with regard to FATCA. The Australian domiciled managed investment schemes for which BlackRock Investment Management (Australia) Limited (BlackRock Australia) is responsible entity (Funds) are expected to be a Reporting Australian Financial Institution under the IGA. The Funds intend to fully comply with their FATCA obligations as determined by the FATCA regulation, the IGA and any associated guidance from the ATO. These obligations include, but are not limited to, the Funds identifying and documenting the FATCA status of its investors. The Funds must also report certain information on applicable investors to the ATO which will in turn report this information to the US Internal Revenue Service (IRS). BlackRock Australia is not liable for any loss an investor may suffer as a result of BlackRock Australia or the Fund’s compliance with FATCA.
In order for the Funds to comply with their FATCA obligations, the Funds will request certain information from their investors as set out in the Funds’ Application Form.
Q. Will BlackRock Australia be compliant with the FATCA regulations and Australia-US IGA?
A. BlackRock Australia intends to comply with its FATCA obligations. BlackRock Australia has registered with the IRS as the sponsoring entity for its Australian domiciled funds and has obtained a Global Intermediary Identification number (GIIN), CUJFUK.00000.SP.036.
Q. When do the new due diligence procedures commence?
Individual Clients - From 1 July 2014, BlackRock Australia will commence establishing the FATCA status of its new Individual investors.
Entity Clients – From 1 January 2015, BlackRock Australia will commence establishing the FATCA status of its new Entity investors (in reliance on the IRS Notice 2014-33).
Q. Where can I find the BlackRock funds’ GIIN numbers?
A. BlackRock Australia is the sponsoring entity for the Funds. BlackRock Australia’s GIIN number is CUJFUK.00000.SP.036.
BlackRock Australia intends to register its sponsored funds once the functionality is available on the IRS website.
Alternatively, all registered GIINs can be searched for on the IRS website using the FATCA Foreign Financial Institution (FFI) List Search and Download Tool.
Q. Where can I find out more about FATCA?
US Internal Revenue Service (IRS)
Australian Treasury Department
Australian Taxation Office (ATO)
Alternatively, please consult your tax advisor should you wish to understand the implications of FATCA on your particular circumstances.