Australian Tax Office Announcement

ATO Announcement - Australian Tax Disclosure Initiative for Offshore Accounts

The Australian Taxation Office (ATO) recently announced an initiative designed to encourage and assist individuals and entities, that hold or benefit from banking relationships held offshore from Australia, to reconcile their tax affairs. This initiative is referred to as the Offshore Voluntary Disclosure Initiative (OVDI).

The ATO, as part of an industry approach, has requested banks and financial institutions in Australia to notify their clients about the OVDI.

The ATO has increased its' focus on Australian taxpayers who may have undisclosed offshore income (including capital gains) or over-claimed deductions involving international transactions. Under the OVDI, the ATO has announced concessions for individuals and entities who voluntarily disclose to the ATO any outstanding tax matters.

If you feel that you could benefit from these initiatives, we draw your attention to these details and recommend that you take independent professional advice.

Full details of the OVDI are available from the ATO website at www.ato.gov.au/offshorevoluntarydisclosure. You can also access an ATO Fact Sheet that provides further information about making an offshore voluntary disclosure.

If you have any questions about this ATO initiative, you should contact your personal tax adviser or the ATO. For general enquiries about offshore voluntary disclosure you can ring the ATO on 13 28 61 (within Australia). For more complex enquiries you can ring the ATO on 1300 132 346. HSBC is not a tax advisor and can not provide tax advice.