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Australians With Offshore Accounts Beware

The Australian Tax Commissioner Michael D’Ascenzo has announced the initiative with a fairly stern warning to those individuals with offshore accounts: 'We are increasing our audit activities in cases where people may try to conceal income and assets offshore in tax havens. Taxpayers who contact us before they are the subject of an audit and make a full and true disclosure will have reduced shortfall penalties. There is nothing wrong with holding an offshore account or investing overseas as long as you pay any Australian tax due.' This may take away a large part of the appeal in holding an offshore account to many Australians.

Letters will be sent to all the people who have been identified as having either a debit or credit card account in the Isle of Man, Jersey or Guernsey. The Australian Tax Department also has access to AUSTRAC data and will be contacting those people who appear to have offshore dealings.

D’Ascenzo also went on to add, ‘I urge people to review their tax returns and if they have undisclosed income to contact us before we contact them. Helping people do the right thing and taking a firm approach with those who don’t builds confidence in the tax system and helps create a level playing field for everyone.'

This targeting of offshore finance centres is very deliberate and it will surely only be a matter of time before other countries start taking similar action.