Project DO IT (Disclose Offshore Income Today) was announced on 27 March 2014 to allow eligible taxpayers with previously unreported offshore financial activities to voluntarily disclose income and assets. The deadline for coming forward under Project DO IT was 19 December last year.
Mark Chapman, director of tax communications at H&R Block, said with the amnesty now over, the ATO will likely target those not declaring foreign income this year.
“Residents again face tough penalties if they do not declare their foreign income from this year,” Mr Chapman said.
“The income can include interest on overseas bank accounts, foreign pensions, rent derived from investment properties, employee share schemes and all wages earned in other countries, no matter how much.”
H&R Block warned that the ATO now receives income information electronically from third parties in Australia and tax authorities overseas, including most institutions that pay interest and dividends, as well as wages summaries from employers and pension payments.
“This information is used to match what is declared in tax returns,” the tax network said. “If the income declared is not the same as the income matched, the ATO will issue an income discrepancy notice.
“If it is found that taxpayers have not declared all their income, the ATO will issue an amended assessment plus penalties and a general interest charge, currently 9.36 per cent of tax avoided.”
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