No ‘red flag’ for coming forward under Project DO IT

Undeclared offshore income and assets must be disclosed by 19 December 2014

The Australian Taxation Office (ATO) is reassuring taxpayers that disclosing under Project DO IT will not give them a “red flag”.

Project DO IT, the ATO’s offshore voluntary disclosure initiative, offers considerable benefits to taxpayers who bring their undeclared offshore income and assets back into Australia’s tax system by 19 December 2014.

Recent feedback to the ATO has raised taxpayer concerns that if they disclose they will be “red flagged” for future investigation.

Deputy Commissioner Michael Cranston has provided reassurance on the issue, saying that the ATO is far more concerned with the taxpayers who don’t disclose than those who do.

Cranston says that the aim of Project DO IT is to provide one last chance for taxpayers to disclose before the net closes completely on offshore tax evasion.

“These disclosures will enable us to put our resources onto the taxpayers who don’t come forward,” Cranston says.

Cranston also says that one of the benefits of disclosing that taxpayers may not realise is that Project DO IT allows offshore structures to be closed down and the assets brought back to Australia.

Taxpayers interested in disclosing are urged to contact their tax advisor or the ATO.

For further information on Project DO IT, including eligibility requirements, disclosure forms and frequently asked questions, visit http://www.ato.gov.au/ProjectDOIT.

Project DO IT requires taxpayers to:

Make a voluntary disclosure of:

Undeclared foreign income or a transaction with an offshore structure

Incorrectly claimed deductions relating to foreign income

Capital gains for foreign assets or Australian assets transferred offshore

Undeclared income from an offshore entity.