Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
If you're worried that an arrangement you're involved in may be abusive, there are things you can do to put your mind at rest.
First, confirm whether or not the arrangement is lawful from a tax perspective. You may wish to consider obtaining independent professional advice from an accountant or tax adviser who has no connection to the arrangement. You can contact us (anonymously, if you like) on 1300 132 346 to discuss your situation.
There are four main ways we can help you:
- you can use any one of the general information services we provide - for example, individuals who earn foreign income and are Australian residents for tax purposes and individuals who are not Australian residents for tax purposes but who earn Australian income, can find information on the Individuals homepage
- you can phone us for general advice and, in some cases, an oral ruling (oral rulings are not appropriate for international dealings where evasion may be involved)
- you can write to us and ask us to provide written answers to your questions
- you can apply for a private ruling online or by phoning 1300 720 092.
How do you make a voluntary disclosure?
We have announced an offshore voluntary disclosure initiative. If you find that there's a problem, you can put things right by making a voluntary disclosure to us.
You may receive correspondence from your bank or us about our compliance program and the offshore voluntary disclosure initiative.
We have been working on a pilot project with some Australian financial institutions. Through this pilot program, we have asked some of their subsidiaries or branches in Vanuatu to write to their Australian customers telling them how, if necessary, to make a voluntary disclosure.
We are also sending letters to individuals we have identified as having offshore debit or credit cards issued by a financial institution in Jersey, Guernsey or the Isle of Man, or international transactions identified through AUSTRAC information.
This initiative is open to those who hold or have held, either directly or indirectly, an offshore account or investment, or have participated in an offshore tax arrangement whether or not you receive letters about your international dealings. However, under the law, voluntary disclosure concessions are reduced if we have begun an audit.
Eligible taxpayers who contact us before they are subject to an audit and make a full voluntary disclosure will have access to reduced shortfall penalties.
If they have not declared taxable income, the primary tax and interest will be payable. However, they can request a further reduction of any penalties or interest charged, or they can ask for additional time to pay, based on their personal circumstances. If we are to help them, they need to provide (in writing) the full details of their circumstances.
You may wish to contact us or an independent professional adviser to discuss your circumstances and determine whether you have a tax liability. If you want to talk to us about your potential tax liability, you can phone us on 1300 132 346.
You should make a full and true disclosure of all matters material to assessing your tax liability. Additionally, you should disclose all tax liabilities, including goods and services tax (GST). Your voluntary disclosure should be made in writing by completing a form to make an offshore voluntary disclosure statement.
We will confirm receipt of your disclosure statement and we may also contact you to follow up or clarify issues.
This way you get peace of mind and we get information to help us investigate the promoter of the arrangement. The sooner you disclose, the better - if you wait until we find you, full penalties may apply and you could be prosecuted for tax evasion (see What happens if you're caught).
New offshore compliance program
We have established an offshore compliance program to focus on Australian taxpayers with tax haven dealings. In particular, the strategy will target those taxpayers who have used offshore bank accounts, offshore credit and debit cards, offshore financial products and/or offshore structures to conceal income or assets from us.
This is in addition to the work we are doing under Project Wickenby and similar projects.
Sections within Risks for taxpayers
Last Modified: Tuesday, 18 October 2011