An interesting headline I am sure you agree.  But what is it referring to?

Whilst you may think it refers to doing 72km in a 60km zone, or looking over the shoulder of the person in front when you were doing school exams….the headline actually refers to TAX EVASION.

Do not confuse TAX EVASION with TAX MINIMISATION.

The first is illegal and the second is good business planning. The focus of this article is on tax evasion. You may have heard of Project Wickenby and high profile “scalps” of Glenn Wheatley and the saga of Paul Hogan trying to leave the country.  Now I know that you don’t want to be either of them.  They and others have been the focus of the ATO in dealing with serious non-compliance targets.

Project Wickenby does not deal with simply making a mistake, which can be corrected with amendments and payment of tax and penalties. It focuses on taxpayers who can be prosecuted for tax crime and associated money laundering. It appears that if you have been associated with a particular alleged   Vanuatu promoter and various offshore activities, you will be caught.

If you have sought to hide from the ATO substantial amounts of offshore income… you are in their sights.

Over my career I have been asked on many occasions to set up offshore companies, just like the big boys do, so that tax is avoided for which I have always declined on the basis of whilst it is legal to set up, it is illegal to evade  tax and divert income. And no client has ever said that I want to reduce tax illegally.  It is clear that reducing tax or planning for tax legally is, part of legitimate business planning.

In finalisation, if it is too good to be true…it is.  And you don’t want to be caught up in Project Wickenby which to date has a total of 18 criminal convictions and 62 people charged with serious offences with $245.44 million in tax collected.  The Australian Tax Office is the A Team, used to dealing with tough nuts, with rude taxpayers and they will not be intimidated.
Only recently two brothers were sentenced to 2 years and 7 months jail each following investigations into the use of tax haven structures in Vanuatu.

So if you have undisclosed offshore bank accounts or broking  account, an offshore trust or offshore bogus invoice arrangements… clean things up now…as “not every one gets away with it all of the time.”

For more information contact Terry Dewing on 9526 1211 or email terry@sullivandewing.com.au.