The ATO has announced a Taxpayer Alert in relation to the non-disclosure of foreign income. Tax Alerts give early warning to taxpayers of areas of special investigation by the Australian Tax Office.
The alert, which comes into effect immediately, describes arrangements under which Australian resident taxpayers who get income from foreign sources, do not correctly include these amounts in their assessable income for Australian tax purposes.
The ATO says its research has shown that many taxpayers are either unaware of their Australian taxation obligations in relation to overseas income, or attempt to deliberately conceal this income.
The purpose of the alert says the ATO “is to remind these groups of their ongoing taxation obligations to avoid potential penalties”.
Under Australian law a resident of Australia is liable to Australian income tax on their worldwide income, subject to some exceptions.
International taxation advisor Tony Anamourlis told Neos Kosmos that tax alerts highlight aspects that most worry the Australian Tax Office.
“It’s very significant in that the ATO is flagging that some people who have overseas assets and overseas bank accounts whilst resident in Australia, may not have declared their proper income from all overseas sources, such as interest on bank accounts, disposal of assets, and dividends,” said Mr Anamourlis.
The alert is an early warning sign to Australians with assets and income in Greece to make a voluntary disclosure to the tax office about their income tax affairs outside Australia.
MrAnamourlis said that anyone with foreign income should make a full disclosure to the ATO and ensure their tax liabilities to the Greek authorities are also fully disclosed.
“Taxpayers with liabilities in Greece should immediately file a tax return in Greece, declaring all of their income and seek advice from a qualified Greek registered Accountant or Greek Lawyer in Greece.
“Once taxpayers are fully compliant in Greece, it makes it much simpler to deal with the ATO. This is all based on tax transparency between the two countries – now information which is held by the tax authorities in Greece about a taxpayer will also be transparent in Australia, which makes every Greek Australian taxpayer’s life much easier.”