As an Australian resident for tax purposes, it is essential to consult with a tax advisor as you will be subject to taxation on your global income. Therefore, it is crucial to include any foreign income in your income tax return under the guidance of a qualified tax advisor.
Foreign income includes:
- Foreign pensions and annuities
- Foreign employment income
- Foreign investment income
- Foreign business income
- Capital gains on overseas assets
Project DO IT was an amnesty offered by the ATO to allow Australian residents to disclose overseas assets and income before 19 December 2014. There were reduced penalties on any tax on the income not previously disclosed, and a ‘no questions asked’ basis was used when the assets were disclosed.
It has now been over a year since the project finished. The ATO has gone through its education and amnesty period and has now publicised its intention to target undisclosed foreign income. The ATO has been increasingly able to conduct data matching based on new international agreements and more excellent data-sharing capabilities.
We suggest you carefully review your income from offshore sources and declare any income before the ATO catches up with you. As always, if you have any questions, please get in touch with us.
Kreston Stanley Williamson Team
*Correct as of May 2016
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.