10 May 2013
MEDIA BACKGROUNDER – NO SAFE HAVENS
Tens of millions of dollars at risk – over one hundred Australians identified
More than one hundred Australian taxpayers have been indentified as being involved in suspicious offshore arrangements.
These Australian cases involve tens of millions of dollars in suspected tax avoidance through the use of ‘shell companies’ and ‘trusts’ around the world including in Singapore, British Virgin Island, Cayman Islands and the Cook Islands.
This information was found in data acquired by the Australian, United Kingdom and United States revenue authorities. The data includes more than two million documents relating to thousands of people worldwide.
Action already being taken on Australian cases
Two cases have been referred for criminal investigation. More than thirty audits are underway and more cases are expected as investigations continue.
Case studies:· A company based in Sydney which has extensive offshore loans (exceeding $20 million) has allegedly claimed millions of dollars in false interest expenses. Information suggests that the loans are a sham, because the offshore lender is controlled by the Australian taxpayers.
· In another case, an audit is underway of a Melbourne based man who is dealing extensively in Australian schemes. The taxpayer stated that he transacted in securities on behalf of offshore entities/clients. However, this data suggests that the Australian taxpayer is the real owner. The value of these share transactions exceeds $25 million.
Next steps – further ATO contact with identified Australians
Next week, the ATO will write to people identified and ask them to explain their international tax arrangements.
There is nothing illegal about an international structure in a globally integrated economy. Some of these arrangements may be legitimate but some will involve tax avoidance or criminal activity.
Where the data contains citizens of other countries, we will be sharing this data with the respective treaty partners.
The ATO encourages any Australians who are unsure of their obligations or who are involved in illegal offshore structures to come forward. See more information on voluntary disclosure.
More information
· The ATO receives a range of intelligence from the community, through our own risk profile indicators and through national and international government networks. There are over 30 countries that have tax information exchange agreements with Australia.
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Canberra
For further enquiries from members of the media: 02 6216 1901 or 0401 147 127