From news.com.au

Commissioner of Taxation Chris Jordan has warned that the concept of the tax haven is dying and it is only a matter of time before dodgers are caught.

Addressing a conference in Hobart, the commissioner urged all taxpayers with offshore assets to declare their interests ahead of a global crackdown.

The Australian Taxation Office has launched a voluntary disclosure initiative, providing a last chance for those with overseas assets and income to come back into the system before the end of the year.

Mr Jordan told the Tax Institute’s 29th National Convention that now is the time for individuals to get their affairs in order so as to avoid steep penalties and the risk of criminal prosecution for tax avoidance.

He said thanks to international co-operation, the ATO has made significant progress in collecting offshore tax, and last year was able to make assessments worth $480 million from the information it had received.

“Even countries previously thought of as tax havens, such as Switzerland and the Cayman Islands, are working to increase transparency,” Mr Jordan said.

The Tax Institute’s president Michael Flynn said the ATO had taken a “pragmatic approach” to repatriating potentially hundreds of millions of dollars of Australian tax, such as not going back beyond the standard amendment period – usually four years.

“At first blush, the initiative appears to be much more generous than its predecessors,” Mr Flynn said.

Separately, the federal parliamentary tax committee’s inaugural report found that under Mr Jordan’s stewardship the ATO is aiming to simplify taxpayer interaction, which will not only increase compliance and revenue collection, but also increase public support for the ATO.

“Efforts to streamline the tax payer experience are crucial to transforming tax administration in Australia,” committee chair John Alexander said.

The committee also welcomed the ATO’s decision to look overseas to countries like Norway and Denmark for examples of best practice and ways to improve the Australian system.

For more on this story go to: http://www.news.com.au/national/breaking-news/tax-havens-dying-concept-tax-commissioner/story-e6frfku9-1226866429917?from=public_rss

PHOTO: www.propertyobserver.com.au