New ATO Powers – International Exchange of Tax Information

We urge all of our clients to ensure you carefully check and disclose all foreign income (both here and abroad), now that new global reporting standards have recently commenced.

The Common Reporting Standard (CRS) is the single global standard for the collection, reporting and exchange of financial account information on foreign tax residents. Banks and other financial institutions collect and report financial account information on non-residents to the ATO. The ATO then exchanges the information with the participating foreign tax authorities of those non-residents.

The ATO also receives financial account information on Australian residents from other countries’ tax authorities.

Please ensure that details you provide to any local or foreign financial institutions are kept up-to-date. To avoid penalties and interest, all foreign income must be declared in tax returns.

You need to be very aware that there are significant penalties involved in making false or misleading disclosures. Based on the seriousness of the non-disclosure, penalties can range up to 75 per cent of the underpaid tax.

If you are concerned about your obligations, then call us on 3822 7201.

For further information from the ATO, you can CLICK HERE.