Tax Administration Act, 2011 (Act No. 28 of 2011)

Regulations

Regulations for purposes of paragraph (a) of the Definition of "International Tax Standard" in Section (1) of the Tax Administration Act, 2011 (Act No. 28 of 2011), promulgated under section 257 of the Act, Specifying the Changes to the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters

Section IV : Due Diligence for New Individual Accounts
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The following procedures apply for purposes of identifying Reportable Accounts among New Individual Accounts.

 

A. With respect to New Individual Accounts, upon account opening, the Reporting Financial Institution must obtain a self-certification on day one of the account opening or within a period of up to 90 days after day one if the Day Two Process is permitted, which must be part of the account opening documentation, that allows the Reporting Financial Institution to determine the Account Holder’s residence(s) for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the Reporting Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures. A Day Two Process for obtaining a self-certification or confirming its reasonableness, is permitted only under the circumstances referred to in the definition of such process.

 

B.
(1)If the self-certification establishes that the Account Holder is resident for tax purposes in a Reportable Jurisdiction, the Reporting Financial Institution must treat the account as a Reportable Account and the self-certification must also include the Account Holder’s TIN with respect to such Reportable Jurisdiction (subject to paragraph D of Section I) and date of birth.
(2) If an individual Account Holder is resident for tax purposes in two or more jurisdictions under the domestic laws of such jurisdictions, all jurisdictions of residence are to be declared in a self-certification and the Reporting Financial Institution must treat the account as a Reportable Account in respect of each Reportable Jurisdiction.
(3) If an individual Account Holder indicates on a self-certification that he or she does not have a residence for tax purposes, the Reporting Financial Institution is required to confirm the reasonableness of the self-certification on the basis of other documentation, including any documentation collected pursuant to AML/KYC Procedures that is at its disposal. If the Reporting Financial Institution does not obtain a reasonable explanation as to the reasonableness of the self-certification, the Reporting Financial Institution may not rely on the self-certification and must obtain a new, valid self-certification from the Account Holder.

 

C. If there is a change of circumstances with respect to a New Individual Account that causes the Reporting Financial Institution to know, or have reason to know, that the original self-certification is incorrect or unreliable, the Reporting Financial Institution cannot rely on the original self-certification and must obtain a valid self-certification that establishes the residence(s) for tax purposes of the Account Holder.