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Undeclared foreign income: the “stick” approach
Published on 01 Dec 21 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Over the course of almost a decade, the ATO has been consistently focused on ensuring that foreign income of Australian residents is taxed correctly in Australia. TA 2021/2 is the latest initiative by the ATO in its focus on ensuring that Australian residents are assessed for tax on all of their worldwide income. TA 2021/2 highlights the ATO’s concerns with certain arrangements where Australian resident taxpayers derive income or capital gains (foreign assessable income) offshore, but fail to declare the foreign assessable income in their Australian income tax returns due to the characterisation of the funds as a “gift” or “loan” from a related overseas entity. It is essential that taxpayers obtain sufficient evidence to prove that their loan or gift is genuine or they should seek professional advice.
Author profiles
Jerome Tse CTA-Life
Jerome Tse, CTA is a Partner at King & Wood Mallesons, specialising in taxation disputes and litigation. Jerome is also the firm’s global transfer pricing coordinator. Jerome is an experienced tax practitioner and has been involved in a number of Australia’s recent high profile tax cases. Jerome was the 2022 Tax Institute President.
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09 August 2023
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