Closing the net on tax haven abuse

Tax haven abuse is a worldwide problem that affects us all. When people try to cheat the tax system, we all pay.

Australian agencies are working together through Project Wickenby and with international revenue authorities to detect, deter and deal with tax haven abuse.

The expects tax professionals to play a vital role in:

• Helping people understand the risks of becoming involved with tax haven arrangements
• Warning people about potential schemes that are emerging
• Giving people the opportunity to make voluntary disclosures
• Providing information on what government agencies are doing to combat tax haven abuse.

The message is simple: don’t get involved in tax haven arrangements and, if you have been involved, please contact us for further help.

Results of the Australian Taxation Audit process so far

Project Wickenby         (Figures to 30 September 2008)

• Has raised $207 million in liabilities, collected more than $70 million and restrained over $75 million from the proceeds of criminal activity
• An additional $70 million has been achieved through increased tax collections in subsequent years
• 28 people have been charged, and 23 criminal investigations are underway
• Three people have been convicted, and two more are facing sentencing

Vanuatu

• In April 2008 search warrants were executed in Australia, Vanuatu and New Zealand aimed at addressing tax evasion and money laundering linked in Vanuatu
• We are conducting 80 audits linked in Vanuatu with over $90 million in allegedly false deductions
• We have written to 240 Australians with apparent links to Vanuatu seeking more information on their tax affairs

Liechtenstein

• In Australia, there are 20 audit cases underway relating to fund ranging from $200,000 to millions of dollars
• We expect to raise liabilities of approximately $60 million from these cases by the end of the year

Offshore voluntary disclosure initiative      (Figures to 27 October 2008)

• Has resulted in the disclosure of over $56.1 million in omitted income
• Has raised $17.9 million in income following 2,424 disclosures involving 48 countries

MORE INFORMATION
Please contact CMA Accounting and Taxation Services or the Australian Taxation Office.