Tightening the Net on International Transactions

The tax office is slowly but surely tightening the net on our assets and income.  In Australia alone over the last few years we have seen an incredible stream of data now fed directly to the tax office from banking institutions and public companies.  This isn't necessarily a bad thing for clients who lose documents as finding and tracing income has been much easier. 

But be warned, as IT progresses and globalisation takes hold so too does our government's ability to tap into our every transaction, no matter how complex your structure.

In the last 12 months, the tax office has undertaken a program to target international activities.  No longer will Australian residents be able to "hide" assets or income in offshore accounts.  Specifically, the tax office has entered into Tax Information Exchange Agreements (TIEA) with various countries overseas for the purpose of elimination tax avoidance and evasion practices.  Mauritius being the latest of 27 countries to sign up.

If you are hiding income and think you are home free, think again.  Seek advice from a tax lawyer.