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ATO says hiding income offshore is ‘pointless’

By Grace Ormsby and Jotham Lian · August 27 2019
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egg
Karen Foat

ATO says hiding income offshore is ‘pointless’

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By Grace Ormsby and Jotham Lian · August 27 2019
Reading:
egg
Karen Foat

Foreign income streams are under the Australian Taxation Office’s scrutiny this tax time, with individuals well advised to correctly declare their income sources.

According to the Australian Taxation Office (ATO), the department’s alignment with the Common Reporting Standard (CRS) gives the ATO access to financial account data from more than 65 foreign jurisdictions that have committed to exchanging intelligence and information.

Assistant commissioner Karen Foat said that hiding assets and income offshore is now “pointless” considering that the Tax Office has information regarding more than 1.6 million offshore accounts that hold more than $100 billion collectively.

“If you’re an Australian resident for tax purposes, you are taxed on your worldwide income, so you must declare all of your foreign income no matter how small the amount may be,” she flagged.

“This may include income from offshore investments, employment, pensions, business and consulting, or capital gains on overseas assets,” the assistant commissioner outlined.

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She warned that any Australians who “deliberately move cash overseas in an attempt to hide it should be concerned”.

The assistant commissioner considered tax havens as becoming a less effective model of hiding interests as international agreements improve transparency.

“You can no longer hide money behind borders,” she advised.

Foreign income includes most pensions and annuities, interest, dividends, royalties, rent, capital gains and personal services income.

Nest Egg has previously considered whether Australians are claiming all they are entitled to this tax time and the mistakes that should be avoided when filing a return

ATO says hiding income offshore is ‘pointless’
Karen Foat
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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