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The Australian Taxation Office has launched “Project DO IT – disclose offshore income today.”
This incentive provides taxpayers with the opportunity to declare their overseas assets and income before 19 December 2014.
Under Project DO IT, people disclosing their offshore assets will:

  • only be assessed for applicable (open) periods of review (generally only the last 4 years);
  • be liable for a shortfall penalty of 10% (low-level disclosures will attract minimal or no penalties);
  • be liable for full shortfall interest charges;
  • not be entitled to utilise any losses that arose in years for which they are not being assessed;
  • be able to seek assurance regarding the ATO’s tax treatment of repatriated offshore assets
  • be able to enter into a settlement deed to obtain additional certainty (where circumstances call for additional surety); and
  • not be investigated or referred for criminal investigation by the ATO on the basis of their disclosures.

To receive the benefits of Project DO IT, taxpayers must make a “”truthful disclosure””. Taxpayers should complete the questions and lodge their disclosure statement with the ATO before 19 December 2014 (or seek an extension). Until the taxpayer lodges, the ATO will continue its normal compliance activities. If the taxpayer is detected first by the ATO then they will not be able to participate in Project DO IT.

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Should you wish to know more about how these proposed changes or transfer pricing requirements, please contact Murray Howlett, Josh Meggs or Kylee Smith from our Taxation Services Division on (07) 3023 1300.