Time is running out to disclose offshore income: ATO
Australians with secret offshore income streams have eight days left to voluntarily disclose them to the Australian Taxation Office (ATO) or face significant penalties and potential criminal prosecution.
Taxpayers who take advantage of the ATO's Project DO IT (Disclose Offshore Income Today) and disclose offshore income, will only be assets for the last four years, a maximum 10 per cent shortfall penalty, and will not be referred for criminal investigation.
ATO deputy commissioner Michael Cranston said there had been enormous interest in the project, with more than 2500 taxpayers coming forward to clean up their tax affairs.
"So far we've had 1750 disclosures, totalling more than $240 million in additional income and $1.7 billion in offshore assets," he said.
"We expect these figures to increase significantly once we receive disclosures from the additional 800 taxpayers who have come forward under Project DO IT, but not yet made a disclosure.
Cranston revealed that Switzerland was the top jurisdiction, with almost 600 disclosures being made.
He added that with the recent ratification of the revised Australia-Swiss Treaty, the ATO will seek its first information exchanges the day after Project DO IT concludes.
"If you have an undisclosed bank account in Switzerland and you don't make a disclosure under Project DO IT, there is a good chance we will be requesting information about your account," he said.
"If we find out about your account through our information exchanges, you will not be eligible for the terms on offer."
Australian taxpayers with undisclosed offshore income streams have until 19 December to take advantage of Project DO IT.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
