ATO offshore voluntary disclosure – one-off opportunity

The ATO’s voluntary disclosure initiative for undeclared offshore assets and income, Project DO IT, is a one-off opportunity for Australian residents to disclose undeclared income derived overseas without being subject to highly punitive penalties.

Those participating in Project DO IT will only pay outstanding income tax on undeclared income and related interest over the past four years, with penalties capped at 10 per cent rather than the 90 per cent rate which may otherwise apply. There will also be no criminal prosecution for eligible taxpayers. This “last chance” offer is available to 19 December, but the ATO warns that anyone selected for scrutiny of their offshore tax affairs prior to that date and before lodging an expression of interest to participate in Project DO IT will not be eligible to participate in the project.