The ATO is urging taxpayers who receive any foreign income from investments, family members or working overseas to make sure they report it this tax time. New international data sharing agreements allow the ATO to track money across borders and identify individuals not meeting their obligations.
This year, the ATO has received records relating to more than 1.6 million off-shore accounts holding over $100 billion and is now using data-matching and sophisticated analytics to identify foreign income that has not been reported.
Under the new Common Reporting Standard (CRS), the ATO has shared data including information on account holders, balances, interest and dividend payments, proceeds from the sale of assets, and other income.
Australians that deliberately move cash overseas in an attempt to hide it should be concerned. Tax havens are becoming a less effective as international agreements improve transparency. You can no longer hide money behind borders.”
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. This may include income from offshore investments, employment, pensions, business and consulting, or capital gains on overseas assets
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