Bowman Offshore Bank Transfers Offshore bank accounts: 10 things you should know | Page 3
From March through to December 2014, the ATO ran Project DO IT (Declare Offshore Income
Today), which allowed Australians holding illegal money offshore to declare those funds and
receive immunity from prosecution. These tax dodgers also had the opportunity to avoid many
of the significant financial penalties normally associated with bringing this income into the
Australian tax system, and as a result it’s estimated that $600 million in income and $4 billion
of assets were disclosed.
8. Panama Papers investigations
The Panama Papers data leak contained information about the financial dealings of more than
214,000 financial entities connected to people in over 200 jurisdictions worldwide, including
around 800 Australians. As a result, the ATO launched an investigation into the activities of
those 800 people accused of hiding their wealth.
Around the world, many high-profile figures were implicated in the scandal including Vladimir
Putin, David Cameron, the Prime Ministers of Iceland and Pakistan, and even kung fu film star
Jackie Chan.
9. Voluntary disclosure
If you have an undeclared offshore bank account, the sooner you disclose it to the ATO the
better. Coming forward before the ATO comes after you can significantly reduce the penalties
imposed and also the risk of prosecution. However, you should always seek legal and tax advice
from an expert, for example your accountant or lawyer, before making a voluntary disclosure.
10. Never hesitate to get professional advice
Although this article is only a very general guide to offshore bank accounts, you will have figured
out by now that opening and maintaining an offshore account can be a complicated undertaking.
There are many laws and regulations you need to abide by, not to mention myriad tax
implications to consider.
With this in mind, it’s recommended that you get some professional financial advice before
opening an offshore bank account. This will help you work out whether an offshore account is
right for you, and what you need to do to ensure that everything is legal and above board.