The ATO yesterday announced the terms of its amnesty for Australian resident individuals with undisclosed offshore income.
The terms of the amnesty are reasonably generous. In simple terms, the amnesty (with a window open until 19 December) includes-
1. A 4-year cap: back-taxes will only be imposed on offshore income for the previous four years.
2. Non-disclosure penalties will be capped at 10%.
3. Nil penalties for low-level disclosures (<$20,000 pa).
4. The ATO will not investigate disclosures for the purposes of prosecuting a criminal offence.
5. The ATO will not refer disclosures for criminal investigation by another law enforcement agency.
6. Interest will be charged at the ‘normal’ ATO rate.
There are some conditions and disclosures need to be open and full.
More detailed commentary will follow in my subsequent blogs.