Undeclared foreign income: the stick approach
Source: Taxation In Australia Journal Article
Published Date: 1 Dec 2021
Over the course of almost a decade, the ATO has been consistently focused on ensuring that foreign income of Australian residents is taxed correctly in Australia. TA 2021/2 is the latest initiative by the ATO in its focus on ensuring that Australian residents are assessed for tax on all of their worldwide income. TA 2021/2 highlights the ATO's concerns with certain arrangements where Australian resident taxpayers derive income or capital gains (foreign assessable income) offshore, but fail to declare the foreign assessable income in their Australian income tax returns due to the characterisation of the funds as a gift or loan from a related overseas entity. It is essential that taxpayers obtain sufficient evidence to prove that their loan or gift is genuine or they should seek professional advice.
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Details
- Published By: Amanda Kazacos, Jerome Tse CTA
- Published On:1 Dec 2021
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