ATO's tax haven crackdown

'Contact us before we contact you' — that is the bottom line message issued by the Australian Taxation Office (ATO) as part of its crackdown on foreign tax havens.

The warning from the ATO has come at the same time it has confirmed requesting information from banks enabling it to identify Australian taxpayers who have undisclosed offshore income or over-claimed deductions involving international transactions.

“Once we receive the information from the banks, we will match it against our own data to identify people who may not have met their lodgement and payment obligations under Australian tax law," Tax Commissioner Michael D’Ascenzo said.

He said the information being sought by the ATO related to the period between 1 July, 2005, and 30 June last year.

D’Ascenzo has made the point that there is nothing wrong with holding an offshore account or investing overseas provided those holding the accounts pay tax consistent with Australian law.

Reinforcing the point that people should contact the ATO before it contacts them, he said that people could come forward before 30 June this year and make voluntary disclosures and therefore access reduced penalties.