Compliance program 2011-12

Overseas income

People with overseas income need to be aware of their Australian tax responsibilities. This includes reporting in their tax returns money received as pensions, rent, and interest from bank accounts, dividends and other business income from Australia and overseas.

We work closely with AUSTRAC, banks and other overseas tax jurisdictions to improve our ability to trace fund flows around the world and identify Australians with income and assets hidden offshore.

Last year we contacted over 10,000 taxpayers where we identified a potential discrepancy - and adjusted returns in over 90% of cases. We intend to contact a similar number this year.

Taxpayers can make voluntary disclosures of undeclared foreign income, profit from offshore assets or over-claimed deductions. When taxpayers make a voluntary disclosure any penalty is reduced.

Over the last four years, people have made over 7,600 voluntary disclosures and we have conducted a further 2,600 audits. We are increasing our audit activities in cases where businesses may try to conceal income and assets offshore.

To obtain more complete information about offshore income and assets, we have increased our use of exchange-of-information provisions in Australia's existing double tax agreements and in newly-signed tax information exchange agreements.

Sections within Individuals

• Employees and contractors
• Work-related expenses
• Overseas income
• Pre-filling tax returns
• Information matching
• Refund fraud
• Split loans
• Referrals to the Tax Practitioners Board
• Superannuation
• Executives, directors and other highly paid individuals