The Australian Taxation Office (ATO) has urged taxpayers who receive income from foreign investments or family members working overseas to ensure they report it this tax time.
Assistant taxation Commissioner Karen Foat said new international data sharing agreements allowed the ATO to track money across borders and identify individuals not meeting their obligations.
“This year, the ATO has received records relating to more than 1.6 million off-shore accounts holding over $100 billion and is now using data-matching and sophisticated analytics to identify foreign income that has not been reported,” Ms Foat said.
“Under the new Common Reporting Standard (CRS), The ATO has shared data on financial account information of foreign tax residents with over 65 foreign tax jurisdictions across the globe.”
She said this included information on account holders, balances, interest and dividend payments, proceeds from the sale of assets, and other income.
“Australians that deliberately move cash overseas in an attempt to hide it should be concerned,” Ms Foat said.
“Hiding your assets and income offshore is pointless.
‘‘Tax havens’ are becoming a less effective model as international agreements improve transparency. You can no longer hide money behind borders,” she said.
She said that in addition to a small number of individuals deliberately engaging in tax avoidance, the ATO was concerned about a large number who were unsure of how to meet their obligations.
“If you’re an Australian resident for tax purposes, you are taxed on your worldwide income, so you must declare all of your foreign income no matter how small the amount may be,” Ms Foat said.
