ATO amnesty – declare foreign income now
What is Project DO IT?
As part of this project the ATO will provide an opportunity for taxpayers to make voluntary disclosures until 19 December 2014 in return for reduced penalties.
Why is Project DO IT important to people who earn income overseas or have foreign assets?
The ATO's increasing focus on international tax avoidance in conjunction with its ability to detect undisclosed foreign income is increasing and it will soon automatically exchange tax information with a greater number of countries. The ATO is targeting taxpayers who omit foreign income and capital gains or over-claimed deductions in their returns.
What must taxpayers do?
Taxpayers who make a voluntary disclosure and the ATO accepts into the project will receive a number of assurances from the ATO, including:
- This will be treated as a voluntary amendment request;
- Assessments will only go back as far as the amendment period for the taxpayer, typically 4 years;
- The tax shortfall penalty will be applied at 10%, or if their additional income is less than $20,000 no shortfall penalty will apply (interest will still apply); and
- They will not be referred for criminal investigation.
For more information about making a voluntary disclosure as part of Project DO IT, please contact us on 02 9957 4033 or via our contact form.
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Last updated April 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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Disclaimer
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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