The Tax Office is encouraging people to come forward and make disclosures of undisclosed income from offshore activities.
Taxpayers who contact us before they are the subject of an audit and make a full and true disclosure will have reduced shortfall penalties.
If you want to contact us to discuss this initiative please call 1300 132 346.
We are asking taxpayers to review their tax returns.
We are increasing our audit activities in cases where people may try to conceal income and assets offshore in tax havens.
You may receive correspondence from your bank or the Tax Office about the compliance program and the voluntary disclosure initiative.
We have worked on a project with some Australian financial institutions, and in a pilot program have asked some of their overseas subsidiaries or branches in Vanuatu to write to their Australian customers informing them of this opportunity and how to make a voluntary disclosure, if required.
We are also sending letters to individuals we have identified using AUSTRAC data as having significant transaction with overseas, or as having an offshore debit or credit card issued by a financial institution in a tax haven, or in a low tax jurisdiction.
Helping people do the right thing, and taking a firm approach with those who don’t, builds confidence in the tax system and helps create a level playing field for all taxpayers.
Benefits – reduced shortfall penalties
If you make an offshore voluntary disclosure under this initiative and your additional taxable income is $20,000 or less for a year you will not have to pay a shortfall penalty for that year.
If the additional taxable income exceeds $20,000 for a year, you will be entitled to a reduced shortfall penalty of 5% of your additional liability.
Shortfall penalty can be as high as 90% of the additional liability, depending on the circumstances that led to the shortfall and the taxpayer’s level of cooperation.
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