RICH Australians owing hundreds of millions of dollars in unpaid taxes
are about to be tapped for the cash they have hidden in tax havens
around the world.
The Australian Taxation Office says the net is closing in on the wealthy tax evaders who are about to be given a “last chance opportunity” to declare the assets they have squirreled away overseas.
Commissioner of Taxation Chris Jordan today announced an amnesty for all Australians who have failed to declare foreign income, ahead of a global crackdown that will expose funds held in havens such as Swiss bank accounts.
Under the voluntary disclosure offer called “Project DOT IT”, taxpayers with offshore assets will have until December this year to come clean.
Mr Jordan told the Tax Institute people disclosing their offshore assets would be assessed for the last four years only and be liable for a maximum shortfall penalty of ten per cent of their debt instead of 90 per cent.
Those coming forward also will escape investigation by the ATO and criminal prosecution.
“Now is the time for individuals with offshore income to get their affairs in order and avoid steep penalties and the risk of criminal prosecution for tax avoidance,” Mr Jordan said.
“As governments around the world step up their data sharing and harness powerful technology to find tax cheats, the concept of the tax haven is dying.
“It is just a matter of time before you will be caught.
“If you have got international tax liabilities act now and come forward and we will bring you back into the system with a heavily reduced penalty.
“If you do not declare your interests you will be caught and penalised.”
Tax office deputy commissioner Michael Cranston said the amnesty was not just for high income earners _ it would be open to any Australian who had not declared foreign income or capital gains or who had over-claimed deductions.
In recent years, information sharing between countries has increased greatly with banking data exchanged automatically and the G20 promoting global tax transparency.
Australia currently has exchange agreements with about 40 countries but that will swell to 100 in the next few years.
Mr Jordan said: “These actions plus enhanced information exchange mechanisms and other intelligence means we will find hidden income.
“There is also the future benefits we will achieve by bringing these assets and income back into the Australian tax system.” Through international co-operation the ATO claims to have made “significant progress” in collecting offshore tax revenue.
Even countries previously thought of as tax havens, such as Switzerland and the Cayman Islands, are increasing transparency.
The Swiss are co-operating more closely with Australia and a formal agreement to share information is expected as early as next year.
During the last amnesty in 2010 the ATO received 8000 voluntary disclosures netting $200 million in extra tax and a further $74 million through future returns.
Tax chiefs expect the latest amnesty could bring in $500 million.
This news story is reprinted from www.dailytelegraph.com.au
Read more details on financial outsourcing services
The Australian Taxation Office says the net is closing in on the wealthy tax evaders who are about to be given a “last chance opportunity” to declare the assets they have squirreled away overseas.
Commissioner of Taxation Chris Jordan today announced an amnesty for all Australians who have failed to declare foreign income, ahead of a global crackdown that will expose funds held in havens such as Swiss bank accounts.
Under the voluntary disclosure offer called “Project DOT IT”, taxpayers with offshore assets will have until December this year to come clean.
Mr Jordan told the Tax Institute people disclosing their offshore assets would be assessed for the last four years only and be liable for a maximum shortfall penalty of ten per cent of their debt instead of 90 per cent.
Those coming forward also will escape investigation by the ATO and criminal prosecution.
“Now is the time for individuals with offshore income to get their affairs in order and avoid steep penalties and the risk of criminal prosecution for tax avoidance,” Mr Jordan said.
“As governments around the world step up their data sharing and harness powerful technology to find tax cheats, the concept of the tax haven is dying.
“It is just a matter of time before you will be caught.
“If you have got international tax liabilities act now and come forward and we will bring you back into the system with a heavily reduced penalty.
“If you do not declare your interests you will be caught and penalised.”
Tax office deputy commissioner Michael Cranston said the amnesty was not just for high income earners _ it would be open to any Australian who had not declared foreign income or capital gains or who had over-claimed deductions.
In recent years, information sharing between countries has increased greatly with banking data exchanged automatically and the G20 promoting global tax transparency.
Australia currently has exchange agreements with about 40 countries but that will swell to 100 in the next few years.
Mr Jordan said: “These actions plus enhanced information exchange mechanisms and other intelligence means we will find hidden income.
“There is also the future benefits we will achieve by bringing these assets and income back into the Australian tax system.” Through international co-operation the ATO claims to have made “significant progress” in collecting offshore tax revenue.
Even countries previously thought of as tax havens, such as Switzerland and the Cayman Islands, are increasing transparency.
The Swiss are co-operating more closely with Australia and a formal agreement to share information is expected as early as next year.
During the last amnesty in 2010 the ATO received 8000 voluntary disclosures netting $200 million in extra tax and a further $74 million through future returns.
Tax chiefs expect the latest amnesty could bring in $500 million.
This news story is reprinted from www.dailytelegraph.com.au
Read more details on financial outsourcing services
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