ATO targeting offshore avoidance
The ATO has warned the net is closing in on individuals with undisclosed offshore income and assets. Deputy Commissioner Michael Cranston has advised that the ATO has ramped up its efforts to identify offshore tax evaders by mining data from overseas tax authorities and financial institutions. This information will be used to encourage people to disclose under Project DO IT, the ATO’s offshore disclosure initiative. Under Project Do It, people disclosing their offshore assets will generally be assessed for the last four years, be liable for a maximum shortfall penalty of 10% and full shortfall interest charges, and will not be investigated by the ATO or referred for criminal investigation on the basis of their disclosures.