TAX NEWS - June 2010

Australia Tax: ATO targets tax dodgers in Wickenby ad blitz

Wealthy Australians who hide money in offshore bank accounts are being warned in an advertising blitz that "Wickenby is watching", the first time the government has used advertising in the $300 million investigation into the use of overseas tax havens.

The move comes as new figures reveal that the "deterrent effect" of the Wickenby project has resulted in a 30 per cent decrease in the flow of money from Australia to Vanuatu, Liechtenstein and Switzerland, three countries on which the tax office has been focusing.

The Australian Taxation Office is offering taxpayers a final chance to voluntarily disclose whether they have been hiding money through the use of offshore structures or have bank accounts that they haven't disclosed.

Its offshore voluntary disclosure initiative ends in two weeks, at the end of the financial year, and the tax office is hoping the ads will prompt more people to come forward.

"If you are thinking of hiding your money overseas, think again," the national print advertisements warn. "Wickenby is watching."

More than 4000 people have approached the tax office about previously unreported income, according to the ATO.

Tax Commissioner Michael D'Ascenzo recently told taxpayers not to wait for another offer. "If you've been waiting to make a disclosure, or hoping we will extend the offer, now is the time to act," he said.

"This offer will end on June 30, 2010, and the concessional penalty arrangements for full disclosures will no longer be available."

For those who are not sure if they have been breaking the law, a taxpayer can call the tax office on an anonymous basis.

So far, 1224 people have faced a tax audit as part of Project Wickenby and $767m in tax liabilities have been issued, with $186m in tax collected.