Opportunity ending - make the right choice before it is too late.
With its increasing capability to track money flows back to
beneficiaries, the ATO is one step away from knocking on the doors of
suspected tax evaders.
‘I want the people who have undisclosed money offshore to realise
they are on notice,' says Greg Williams, ATO Deputy Commissioner. 'If
they think they can remain undetected, they should think again. We are
just one step away from knocking on their door,' he says.
'To support the enforcement of Australia’s tax and super laws, the
law gives us full access to the details of every single international
funds transfer involving Australia. Further, our international tax
treaty partners are sharing more information with us every day,' he
says.
‘Make no mistake; the ATO has a long reach. Just because something
happens outside Australia's borders doesn’t mean it’s beyond the
watchful eye of the ATO,’ the deputy commissioner says.
End of find out more
The ATO is also working more closely with banks to get a better understanding of the volumes of data available from AUSTRAC.
‘We now have a greater ability to follow the trail of money across
borders to the end beneficiary. Tax evaders should be aware that complex
structures designed to throw authorities off the scent won’t stand up,’
Greg Williams says.
During 2012–13, AUSTRAC information contributed to 1,428 ATO audits
that raised $572 million in additional tax. This is an increase of 127%
from the $252 million raised in 2011–12.
For those who heed the warning and want to come forward, the ATO’s
offshore voluntary disclosure initiative, Project DO IT, should be just
the circuit breaker they are looking for.
Project DO IT provides Australians with the opportunity to
voluntarily declare undisclosed or incorrectly reported offshore
financial activities, and avoid steep penalties and the possibility of
criminal charges.
With just two months remaining until the 19 December deadline, the
ATO wants people to know that time is running out and they need to act
quickly.
Many are coming forward
- More than 1,500 taxpayers have lodged a full disclosure or expression of interest
- More than $180 million of previously undeclared income has been disclosed
- More than $1 billion worth of previously undeclared assets has been disclosed.
Case Study: 5 years jail for respected tax agent
Those who think that that there is safety in numbers will find that
they are mistaken. It’s not a numbers game when it comes to catching tax
evaders; our access to data and ability to use it is unprecedented, and
momentum is only growing.
Recently a high-profile, respected tax agent was found to have used
money laundering and other methods to help clients avoid paying tax. The
court was told she used banks in Vanuatu to channel millions of
dollars.
When the ATO uncovered the fraud, every one of the tax agent’s
clients also came under suspicion, due to their tax file numbers being
associated with the crime. Some of those clients have already been
jailed under the Project Wickenby program while others are still being
investigated.
The position of trust tax agents have with their clients and their
knowledge of the tax system means they have a critical role in
maintaining and protecting the integrity of that system. When that
position is used to take advantage of the system for the agent's own
personal gain and that of their clients, the penalties are severe.
The tax agent was sentenced to five years in jail, with the judge
noting that the agent’s actions “were a significant breach of trust on
the part of a qualified and highly placed accountant.”
Read more about
our prosecution record to dateExternal Link.
End of example
AUSTRAC’s vast store of financial intelligence
In 2012–13 AUSTRAC received more than 84 million individual reports
of financial transactions and suspicious matters from industry and
government partner agencies (compared to 59 million reports in 2011–12).
This total included:
- almost 80 million reports of international funds transfers with a total value of more than $3.5 trillion
- more than 44,000 reports of suspicious matters submitted by industry.
Each year AUSTRAC disseminates thousands of pieces of financial
intelligence to its partner agencies, including the ATO, to assist them
in their investigations into tax evasion and other serious crimes.
A good offer
Project DO IT – the ATO’s offer of reduced penalties for those who
disclose offshore income – is a genuine offer that advisers and relevant
individuals should take seriously. This is the advice of tax advisers,
Mark Leibler and Michael Bersten, in a
panel interview with ATO deputy commissioners, Michael Cranston and Greg Williams, hosted by David Koch.
'This is a unique once-in-a-lifetime opportunity. Anyone who doesn’t
take advantage of it would have to be insane, frankly,' Mark Leibler
says in the interview, while Michael Bersten warns those affected: 'If
you have something to disclose, you should come forward'.
Reinforcing what Mark Leibler and Michael Bersten say, Deputy
Commissioner Michael Cranston urges taxpayers to act. 'Project DO IT is a
good offer and those who let it pass by will regret it,' he said.
'If you need to disclose international financial activities, act
quickly and decisively. If we detect you first, you will be exposed to
the full force of the law, including severe penalties.'
Under the initiative, the ATO is providing a number of benefits. Most
significantly, taxpayers have an opportunity to avoid steep penalties
and the risk of criminal prosecution for tax avoidance.
‘If you have something to disclose you should come forward, it’s in
your own best interests to get some further advice and find out what
your position is,' Michael Bersten says.
'It's an offer so good that we couldn’t possibly offer it again,' Greg Williams says.
Project DO IT is an opportunity for all Australians who have engaged
in previously unreported offshore financial activities to get their tax
affairs in order.
There are very few taxpayers who would not be eligible to make a disclosure under this initiative.
The process has been designed with the assistance of advisers and professional associations.
'The ATO has gone through a really fantastic process of consulting
and ensuring this is a really robust, fair and balanced program. This is
in the best interests of Australia and the individuals concerned,'
Michael Bersten says.
For more information on the offer, eligibility, and what you need to do to disclose, refer to
ato.gov.au/projectdoit
Panel interview
In the panel discussion facilitated by well-known television
presenter David Koch, tax experts Mark Leibler and Michael Bersten join
ATO deputy commissioners Michael Cranston and Greg Williams to discuss
the tax system and fairness, ATO's capability, and Project DO IT.
The discussion goes for about one hour and has been segmented into five videos:
- The tax system and fairness
- The ATO’s capability and effectiveness
- Project DO IT – why come forward now?
- The future of tax administration
- Q&A.
Get it done
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Source:
https://www.ato.gov.au/General/The-fight-against-tax-crime/In-detail/Targeting-Tax-Crime-magazine/2014/Targeting-tax-crime--Project-DO-IT---October-2014/?page=1#A_good_offer
ato.gov.au 30 Oct 2014
Another deceptive piece of information for the masses.
The ATO is not a lawful entity.
Tax is voluntary.
False information disseminated to keep the masses oppressed in the Police State of Australia.