The OVDI may apply to your circumstances if you have omitted foreign income or capital gains, or you have over-claimed deductions.

You should make a voluntary disclosure if you have omitted foreign income or capital gains, or over-claimed deductions from:

• the holding of offshore accounts, including debit and credit cards;
• other offshore financial investments;
• participating in an offshore tax arrangement where foreign income or capital gains have been omitted or deductions have been over-claimed; or
• money received from offshore entities, such as partnerships, trusts or companies in such arrangements.

Remember, it is generally not illegal to hold an offshore account or invest overseas as long as you pay the tax you are liable to pay.

If you have failed to declare some foreign income or capital gains, or if you have over-claimed deductions, the ATO may reduce your penalties if you contact them and disclose the foreign income, capital gains or over-claimed deductions voluntarily before you are the subject of an audit. You will still have to pay the income tax you are liable to pay, plus any penalties and interest.

The OVDI form is available for download at the ATO Website, but must be completed and received at the ATO on or before the 30 June 2010.