Transactions disguised through offshore secrecy or through arrangements designed to hide the source, nature or ownership of assets and income are an ongoing focus for us.
We are detecting more cases for action by analysing AUSTRAC data, our banking transparency strategy and liaising with other government agencies and overseas revenue authorities. We also receive information through data-matching activities from concerned citizens. We conduct profiling to classify risk and take appropriate action. Our action may involve taxpayer questionnaires, letters to promoters, taxpayer reviews, default assessments, audit activities, imposing penalties and interest and prosecutions.
Project Wickenby has been effective in improving future compliance by identifying an additional $306 million in tax paid.
AUSTRAC's long-term analysis also indicates Project Wickenby is having a considerable impact on tax abuse associated with secrecy havens.
A general analysis of fund flows from Australia to secrecy havens shows a 15.8% decrease to 13 haven countries, particularly Vanuatu, Liechtenstein and Switzerland where Wickenby had a significant focus. This demonstrates the broader impact of Project Wickenby.
As we sign more taxation information exchange agreements we increase our ability to share information. Working with our jurisdictional and Project Wickenby partners will continue to improve our ability to find tax evasion arrangements. We will also focus on those who did not take the opportunity to come forward.
We are still seeing cases where foreign income is not declared. Under our current arrangements taxpayers are entitled to penalty reductions for voluntarily disclosing income not previously taxed.
Another focus is on offshore promoters who deal with advisers, participants and potential participants. By targeting these promoters, we expect to reduce participant numbers and raise community awareness that dealing in arrangements involving abusive secrecy haven schemes is not worth the risk.
Sections within Abuse of the taxation and superannuation systems
Last Modified: Friday, 1 July 2011