ATO’s overseas income project pays dividends
The Australian Taxation Office’s (ATO’s) recent campaign encouraging people to declare overseas income has had a positive impact on the Government’s coffers, according to a recently-released report from the Australian National Audit Office (ANAO).
The ANAO report examined the number of tax settlements entered into by the ATO but also revealed the degree to which the so-called Project DO IT (Declare Overseas Income Today) drove a surge in revenue as taxpayers with overseas holdings entered into arrangements with for payment.
Project DO IT was an ATO initiative announced in March 2014 that was designed to encourage taxpayers with unreported offshore income and assets to make voluntary disclosures and re-engage with the Australian tax system.
Under the project, eligible taxpayers who came forward would generally only be assessed for limited penalties and interest, and would not be investigated on the basis of their disclosures.
The ANAO report pointed to the effectiveness of the project noting that the increased number of settlements in 2014–15 and 2015–16 could be attributed to settlements finalised as part of Project DO IT.
It said that there were 335 and 676 Project DO IT cases within the settlements finalised in 2014–15 and 2015–16 respectively, with all Project DO IT settlement cases finalised as at early 2016-17.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
