The Tax Office has announced that it will commence a global crackdown on unreported foreign income. This includes those taking advantage of international 'tax havens'.
It has, however, also declared an amnesty until 19th December 2014 for voluntary disclosure. As long as they don't detect the activity themselves, those who come forward and voluntarily declare any offshore income can do so without fear of steep penalties and possible criminal prosecution.
The Tax Office is using increasingly complex data matching techniques to track undisclosed foreign income, and enlists the cooperation of many overseas jurisdictions, including some that were previously considered to be safe havens, like Switzerland for example.
Income being targeted includes:
-
foreign income or a transaction with an offshore structure
-
deductions relating to foreign income that have been claimed incorrectly
-
capital gains in respect of foreign assets or Australian assets transferred offshore
-
income from an offshore entity that is taxable in your hands.
Called Project DO IT (caps not ours), the disclosure process requires the completion of a form which then must be lodged with the Tax Office.
If you think you may be affected, you can find more information, and a link to the disclosure statement, here.