Australian Taxation Office (ATO) has ramped up its focus on offshore tax evasion by visiting seven adviser firms linked to offshore arrangements and contacting over 100 parents who paid their children’s fees from an overseas bank account.
In a press statement, the ATO said the move forms part of a new wave of action to combat offshore evasion which had involved the ATO obtaining more than 5,000 client names from wealth management firms and compiling a list of 100 advisers and promoters operating globally that have a direct link with people who may have evaded taxes.
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The agency ATO obtained information from about 60 private schools and matched it against tax returns filed by parents.
The ATO added that it will now share the information with the nine key overseas tax administrations. Some of these offshore advisers are located in Jersey, Switzerland, Guernsey, British Virgin Islands.
"The net is closing for people who think they can avoid their Australian tax obligations by holding money and assets offshore", ATO deputy commissioner Michael Cranston said.
The moves by the ATO come about as a result of data projected from Project Do It, which provides reduced taxes and penalties for people to voluntarily disclosure offshore income and assets.
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By GlobalDataUnder the project, which ended on 19 December 2014, more than 5,800 Australians have brought $600m in offshore income and $5.4bn in assets back into the Australian economy and the ATO has raised more than $245m in additional tax revenue liabilities for the community.
The ATO added that it will work collaboratively with other tax administrations to undertake joint compliance action on advisers and taxpayers, in a new shift towards greater transparency.
