Project Do It – Offshore Income Disclosure – Disclosing Foreign Income

Project Do It – Offshore Income Disclosure – Disclosing Foreign Income

PROJECT DO IT – YOUR RIGHT TO PARTICIPATE

Project Do It is a recent ATO amnesty / initiative in 2014 urging Australian resident taxpayers to voluntarily disclose unreported offshore / foreign income and assets. Project Do It requires you to disclose your offshore foreign income voluntarily and amend your tax returns to correctly report your offshore income where you have not previously done so.

Vintage Lawyers can assist you with making a voluntary disclosure regarding your unreported offshore / foreign income and assets.

Project Do It requires you to voluntarily disclose amounts not reported or incorrectly reported in your tax returns, including:

  1. foreign / offshore income or a transaction with an offshore / foreign structure
  2. foreign income deductions that have been incorrectly claimed in your tax return
  3. capital gains derived in respect of foreign assets or Australian assets transferred overseas
  4. offshore income that is taxable by you

All taxpayers are eligible to participate in Project Do It, regardless of whether you are an individual, company, corporate limited partnership, partnership, trust, superannuation fund and executors or administrators of a deceased estate.

WHAT ARE THE BENEFITS OF PARTICIPATING IN PROJECT DO IT?

The Benefits of participating in Project Do It are:

  1. The time limit for amending your tax returns is 4 years
  2. 10% Shortfall Penalty applies if your additional taxable income is greater than $20,000 in a tax year following your voluntary disclosure
  3. 10% Shortfall Penalty will be remitted in full if your additional taxable income is $20,000 or less in a tax year following your voluntary disclosure
  4. The ATO will not investigate your offshore disclosure for the purposes of prosecuting you for a criminal offence
  5. The ATO will not refer your offshore disclosure to the Commonwealth Director of Public Prosecution or another law enforcement agency
  6. The ATO can provide guidance as to the tax effects of winding up offshore disclosures or transferring your offshore / foreign asset(s) to Australia

Please note, you will still have to pay shortfall interest charge (GIC) at the normal rates.

ARE YOU EXCLUDED FROM PARTICIPATING IN PROJECT DO IT?

You are not entitled to participate in Project Do It if:

  1. You are already subject to an ATO audit concerning your omitted offshore income, capital gains or over-claimed deductions you intend to disclose
  2. ATO have issued with a Compulsory Information-Gathering Notice to substantiate your offshore income, capital gains, or over-claimed deductions that you intend to disclose
  3. You are involved in promoting or marketing tax evasion schemes
  4. You are subject to a criminal investigation concerning tax-related criminal offences ir have previously been convicted
  5. You derived foreign assets or income from serious criminal offence unrelated to tax
  6. You have failed to comply with your previous offshore voluntary disclosure initiative that you participated in

Vintage Lawyers can advise you of the tax consequences in voluntary disclosing your offshore income and / or capital gains and assist you with making the voluntary disclosure in the approved form, the Disclosure Statement – 2014.

All Rights Reserved. Copyright © Vintage Lawyers 2014. Liability Limited by a scheme under the Professional Standards Legislation. www.vintagelawyers.com.au