Earlier this week the ATO announced it has requested information from banks which it will use to identify Australian taxpayers who may 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.
The information relates to the period 1 July 2005 to 30 June 2009.
There is nothing wrong with holding an offshore account or investing overseas as long as you pay any Australian tax due. The ATO’s aim is to identify people who may be deliberately trying to hide income or assets offshore.
The ATO is sending the message: “Contact us before we contact you”
If this is likely to impact upon you in a negative way, it might be wise to come forward and make a voluntary disclosure before 30 June to ensure reduced penalties. If you decide to take your chances, be aware that penalties will be much higher if you are subject to an audit in the future.
People can make a voluntary disclosure to the ATO by calling 1300 132 346. More information is available on the ATO website at www.ato.gov.au.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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