Australia Requests Information From Banks

by Mary Swire, Tax-News.com, Hong Kong

19 April 2010

The Australian Taxation Office (ATO) has announced that it has requested information from banks which it will use to identify Australian taxpayers who may have undisclosed offshore income or over-claimed deductions involving international transactions.

The announcement coincides with a gazette notice which sets out the financial institutions that operate in Australia, from which the ATO has requested information. The information relates to the period from July 1, 2005 to June 30, 2009.

“Once we receive the information from the banks, we will match it against our own data to identify people who may not have met their lodgement and payment obligations under Australian tax law,” Australia’s Tax Commissioner, Michael D’Ascenzo, said.

“There is nothing wrong with holding an offshore account or investing overseas as long as you pay any Australian tax due,” he added. “Our aim is to identify people who may be deliberately trying to hide income or assets offshore.”

The ATO emphasized that taxpayers can still come forward and make a voluntary disclosure. They can declare undisclosed offshore income or over-claimed deductions involving international transactions and receive reduced penalties under the offshore voluntary disclosure initiative. The offer ends on June 30, 2010.

“People who choose not to come forward run the risk of being audited in the future, in which case the penalties would be much higher,” Michael D’Ascenzo continued. “As we get access to more and more intelligence on offshore transactions, I urge people to come to us before we come to them.”

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