Tax administrations in Australia, Canada, France, Italy, New Zealand, Sweden, United Kingdom, and the United States of America and others, all member countries of the OECD’s Forum on Tax Administration (FTA), are working together concerning Liechtenstein accounts being used for tax avoidance and evasion.

Mr D’Ascenzo said the ATO has already issued notices to produce information and conducted unannounced access visits with Australians who have suspected links to Liechtenstein accounts or legal entities.

“In Australia, there are 20 audit cases underway relating to funds in Liechtenstein ranging from $200,000 to millions of dollars,” Mr D’Ascenzo said.

“These are ongoing inquiries and the final tax bill is still unclear.

“We are committed to ensuring there is a level playing field for people who do the right thing and have therefore increased our focus on Australian taxpayers who have abusively used offshore bank accounts , offshore financial products, offshore tax arrangements and/or offshore structures.”

Mr D’Ascenzo said this should send a clear message to participants and promoters involved that they can expect to face the full force of the law if they do not come forward now.

“Taxpayers who contact us before they are the subject of an audit and make a full and true disclosure may be entailed to substantial reductions in shortfall penalties under our offshore voluntary disclosure initiative. They should do so before it is too late.”

The ATO has already received 425 submissions disclosing $17.5 million in income from offshore activities but encourages more people to come forward before it contacts them.

Where taxpayers do make a voluntary disclosure and that disclosure indicates possible criminal offences, the Commonwealth Director of Public Prosecutions has indicated he will favourably consider granting an indemnity from criminal prosecution in relation to the taxpayer’s involvement in the scheme where:

• the case does not exhibit a significant degree of criminality
• the taxpayer provides information about how the arrangements worked, including the role and identity of the promoter, and
• the taxpayer co-operates wit the investigation and consequential proceedings.

The professionals at The Quinn Group are available to offer you advice on making a voluntary disclosure. If you would like to schedule an appointment or more information  please <click here> or call 1300 QUINNS (1300 784 667) to contact us.