Offshore super trust structures in ATO spotlight
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Those avoiding paying tax through offshore trust structures might be subject to penalties if they do not disclose these activities to the Australian Taxation Office.
Tax Commissioner Michael D’Ascenzo said people are using offshore trusts to invest funds received from a related non-resident employer or service entity to earn income overseas.
“After a period of time, often many years, the accumulated money may be moved to Australia under the guise of retirement benefits or contributions to a complying superannuation fund,” he said.
“In the meantime, no tax is paid in Australia on the income accrued in the overseas trust fund.”
Those involved in similar offshore activities, such as undisclosed income from offshore activities, or who have diverted Australian income offshore, are entitled to reduced penalties if they declare all income by June 30, 2010, before they are the subject of an audit.
AUTHOR
Caroline Munro
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