Last days to declare offshore income
The Australian Taxation Office’s (ATO) offer of reduced penalties in exchange for the full disclosure of undeclared offshore income will close next week with the end of the financial year.
Prior to the 30 June deadline, additional taxable income of $20,000 or less will not incur a shortfall penalty, while amounts over $20,000 will attract a 10 per cent penalty.
After 30 June, penalties may be as high as 90 per cent of undisclosed income — with the most serious cases to be prosecuted, according to the ATO.
The initiative has resulted in the declaration of $406 million since it was introduced in July 2007, the ATO said.
“This initiative has given nearly 4,100 taxpayers the opportunity to make a voluntary disclosure and to put their affairs in order,” said Commissioner Michael D’Ascenzo.
“Assessments have been issued for around $73 million which gives back to the community the tax that was duly payable.”
Since November 2009 people have been able to approach the ATO to ask if they would further investigate potential criminal breaches, he said. In these cases the ATO would often seek advice from a qualified panel including an independent non-ATO member.
Disclosures made under this agreement have included an assurance from the ATO that no criminal investigation would take place. Many of these disclosures have involved funds in Switzerland, Liechtenstein, Hong Kong and the UK, according to the ATO.
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