The ATO is getting closer and closer to catching up with those who are hiding income overseas.
The ATO has agreements with over 100 countries including tax treaties and information exchange agreements. Notably there is the J5 coordinated effort that consists of tax agencies in Australia, the United Kingdom, the USA, Canada and the Netherlands. The J5 share intelligence on international tax crime and money laundering.
The ATO in recent years has reported over 2,500 exchanges of information arising from its international agreements, which has enabled it to identify $1billion of unpaid tax amounts.
Most recently, the ATO has announced that they expect several hundred Australians are participating in tax avoidance arrangements out of Central America and have commenced multiple investigations.
The BIG TIP, if anyone has undeclared offshore income or assets the ATO will offer reduced penalties and charges if you voluntarily declare unpaid taxes.
We have previously helped people with offshore disclosures and achieved favourable outcomes. Give us a call if you have something to declare and you want access to our expertise.
To see other March 2020 Client Alerts, go here.