Have you told ATO about your foreign income or interest earned on overseas accounts?

New international data sharing agreements are allowing the Australian Taxation Office [ATO] to track money across borders and identify individuals not meeting their obligations. The ATO is asking taxpayers receiving foreign incomes to make sure they report it this tax time. They are concerned about Australians who are unsure about how the system works.

Indian rupees, US Dollars Source: Supplied

The Australian Taxation Office has struck a data sharing deal with more than 65 countries. 

Under the new Common Reporting Standard, the Australian Taxation Office has discovered more than 1.6 million off-shore accounts, holding more than  100 billion dollars.

Australian residents are taxed on their worldwide income.

This includes foreign earnings from investments, family members, or any money earned working overseas.

The tax office may question different family and domestic arrangements, such as foreign property investments, or a bank account for family overseas.

The system ensures people aren't taxed twice.  Anyone who has already been taxed overseas may be entitled to a credit in their Australian return.

To hear this audio feature which includes advice from ATO and tax agents, click on the link above.

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