Tax haven flows increase by 230 per cent

compliance/australian-taxation-office/risk-management/ATO/

30 May 2008
| By Mike Taylor |

Australian transfers to and from tax havens increased by 230 per cent to $5.8 billion in the five years between 2001-02 and 2005-06, according to data contained in an Australian National Audit Office (ANAO) report published this week.

The report, examining the Australian Taxation Office’s (ATO’s) strategies for dealing with tax haven risk, concluded that the concealment of assets and income in offshore arrangements had presented significant challenges for the tax office, yet a key steering committee tasked with overseeing the arrangement had not yet met.

It said the inability of Australian authorities to easily access information beyond the nation’s jurisdiction presented difficulties in fully understanding the nature of taxpayers’ offshore transactions.

“This is compounded in countries where banking and legal frameworks ensure the information is not disclosed to third parties,” the ANAO report said.

It said that the ATO had adopted a risk management framework for its compliance program where risks were identified and assessed and in response treatment mitigation strategies were developed, implemented and evaluated.

The report said that within the ATO’s risk management model there were specific management arrangements to mitigate tax haven compliance risks comprised of a combination of oversight committees, intelligence areas and compliance staff from a number of operational areas undertaking specialist audit work.

However, it said that at a formal level, the key steering committee responsible for determining strategic direction had not yet met in accordance with its charter.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

6 days 17 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

3 weeks ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

1 week 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5