Declaration of offshore income

The commissioner of taxation has announced that the benefits previously enjoyed by taxpayers from offshore tax havens have been greatly diminished due to their ongoing audit program. A new offer is now available to taxpayers who have not declared all income derived from offshore activities.

“This is a chance for people with undeclared income, for example interest earned offshore, to contact the Tax Office and sort out their affairs. The offer is open until 30 June 2010.”

A similar offer was made by the Taxation Office in 2007 which produced in excess of 3,000 disclosures with a total of $306 million in undeclared income.

Taxpayers accepting the new offer will incur a shortfall penalty of 10% if their undeclared offshore income exceeds $20,000 in a tax year.

The Taxation Office will not impose the shortfall penalty on undeclared income of $20,000 or less for that year.