In recent months, the ATO has made no secret that it will be targeting individuals with assets and income from overseas. Just a month ago, the ATO announced an amnesty called Project DO IT to allow people to declare unreported assets and income they have received from overseas, which has already raised over $13 billion in back taxes.
Now the ATO is backing up that amnesty with a new data-matching program to target those who have not voluntarily declared foreign income.
The data-matching program will troll through information obtained in co-operation with overseas tax authorities on Australians with off-shore investments and bank accounts. Information from Australian and foreign banks on fund flows, interest and account balances along with information from informants about offshore accounts and money transfers will also be in play.
If you do not declare income you receive from overseas that you should be paying tax on in Australia and the ATO catches you, then you can expect very little sympathy. Now is not the time to assume that just because your foreign income is genuinely not subject to tax overseas that it's not taxable here. This is an area where expertise is warranted.
For more information declaring international interests as part of the amnesty, please contact us on 02 9957 4033 or via our website contact form.
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Last updated July 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.
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.