ATO launches offshore voluntary disclosure initiative
The ATO has launched its new offshore voluntary disclosure initiative, Project DO IT’. Those who disclose income and assets hidden offshore by 19 December 2014 will receive substantially lighter penalties in return for coming forward.
The Australian Taxation Office (ATO) is encouraging people to voluntarily disclose any income and assets hidden offshore in return for significantly lighter penalties.
Tax Commissioner Chris Jordan launched the new initiative, named Project DO IT (disclose offshore income today) in March this year.
For those who come forward, the ATO will look back only four years and impose a penalty of just 10 per cent of the tax that should have been paid. Any Australian tax evaded must be paid with interest. Depending on the circumstances of the case, the ATO may also agree to ignore tax associated with bringing offshore assets back to Australia. Evaders will have until 19 December 2014 to come forward.
Project DO IT is a precursor to more aggressive action from an ATO, which will be bolstered by improved information sharing arrangements with an increasing number of countries, some of whom have recently shed their reputation as tax havens.