The ATO has warned taxpayers that it holds data on over $100b held in offshore accounts and uses sophisticated analyses to identify taxpayers with unreported foreign income. It is urging taxpayers to report any foreign income whether from investments, family members or overseas employment, no matter how small, and even if tax has been paid overseas.
Given the new Common Reporting Standard (CRS), the ATO said hiding income offshore was now pointless. New international data sharing agreements allow the ATO to track money across borders and identify individuals not meeting their obligations. The ATO has also shared data on financial account information of foreign tax residents with over 65 foreign tax jurisdictions across the globe. This includes information on account holders, balances, interest and dividend payments, proceeds from the sale of assets, and other income.
The data shows many Australians with financial dealings in China, the United Kingdom, Switzerland, Singapore and the United States. The ATO encouraged taxpayers who have not declared their foreign income to make a voluntary disclosure as soon as possible.
Source: ATO media release, 15 August 2019.
