The ATO has announced that it has undertaken its first ever automatic sharing of bank information with the United States Internal Revenue Service (IRS).
Details of over 30,000 financial accounts worth over $5 billion are being provided to the IRS under the new powers of the US Foreign Account Tax Compliance Act (FATCA).
It stated that the information provided on US citizens and tax residents with Australian bank accounts is the first step in a wave of transparency measures being implemented globally by Governments and tax administrations.
Beginning in 2017, close to 100 countries will be sharing non-resident data under the OECD Common Reporting Standard (CRS).
In return, the ATO will receive data from the IRS about Australians with financial accounts in the IS, and will use that data to detect cases of undeclared offshore income and tax evasion.
The ATO says that it is committed to ensuring that taxpayers are disclosing their offshore income, and implementing the CRS.
The new transparency initiatives further strengthen Australian’s existing network of international treaties and information exchange agreements with over 100 jurisdictions.
During 2014/15, the ATO engaged in 519 exchanges of information resulting in total tax liabilities of $255 million (up from $250 million in 2013/14).
If you believe you may have undeclared foreign income you can find out more about our foreign income services or contact us.
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