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Australian Politics Forum
http://www.ozpolitic.com/forum/YaBB.pl General Discussion >> General Board >> well this will cheer the Labs up. http://www.ozpolitic.com/forum/YaBB.pl?num=1449528396 Message started by cods on Dec 8^th, 2015 at 8:46am

Title: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 8:46am

http://www.dailytelegraph.com.au/news/nsw/private-schools-dobbing-on-parents-to-the-taxation-office/story-fni0cx12-1227637057527

PRIVATE schools are dobbing in parents to tax investigators who believe students’ fees are being paid from secret tax havens overseas.

The prestigious schools have been compelled to reveal to the Australian Taxation Office the names of up to 100 parents paying their children’s fees from an overseas bank account or through a “related offshore entity”.

ATO deputy commissioner Michael Cranston said yesterday information had been obtained from about 60 private schools around Australia — including some top Sydney colleges — showing the parents who had paid fees from offshore sources.

“We have checked this information against income tax returns and will follow up discrepancies with about 100 parents who may have failed to declare their offshore interests,” Mr Cranston said.

“We will be asking them to provide documents and attend interviews to answer questions about their arrangements.

“There is nothing wrong with having an offshore account but you need to pay tax on the interest or earnings.”

Mr Cranston said: “We were able to identify a lot of school fees for private schools. They (parents) get their kids’ school fees paid and some of them are quite sizeable.

“These sort of moneys have been flowing back from trustee services and we now have 100 of these globally in Australia and overseas _ they manage the funds for these people and bring the money back (to Australia) and pay the money for the clients.

“They might have an account sitting in Jersey, have a trustee looking after it and they are told to pay the school fees from the account.”

Mr Cranston said the private schools had been “forthcoming” in naming parents linked to the payments.

“The net is closing for people who think they can avoid their Australian tax obligations by holding money and assets offshore”, he said.

“For the first time we have been able to compile a list of 100 advisers and promoters, operating onshore and offshore, that have a direct link with people who have evaded taxes.

“We will be visiting Australian advisers including tax agents, legal advisers, financial institutions and stockbrokers to obtain their full client lists and identify those who have failed to come forward and clean up their tax arrangements.”

Through international treaties and information exchange with more than 100 countries Australia increasingly is closing off access to havens giving the evaders nowhere to hide.

Under the crackdown more than 5800 Australians have brought $600 million in offshore income and $5.4 billion in assets back into the Australian economy and more than $245 million has been raised in additional tax revenue.

Mr Cranston said: “The message is loud and clear: we will be reviewing our intelligence, undertaking audits, applying significant penalties and referring the worst cases for criminal investigations.

lets hope that net is also catching those NASTY Underhand Companies like FAIRFAX who pay next to NO TAX in this country..

Title: Re: well this will cheer the Labs up.
Post by John Smith on Dec 8^th, 2015 at 8:58am

why cheer up labs cods? do the libs support tax avoidance?

Title: Re: well this will cheer the Labs up.
Post by Redneck on Dec 8^th, 2015 at 9:08am

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

Only if its working class tax avoidance. (The Pommie class system showing in her)

Title: Re: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 9:09am

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

I am comparing it with the whingeing from those who are convinced on ly the Unions are caught in the trap of the Royal..and business is getting away with murder.. its the usual whinge from the left....

thats why I said it..

I dont think anyone excepts TAX AVOIDANCE...of any kind.. at least I hope they dont....

and most of thes people caught in this net.. would be HIGH END BUSINESS people I would think...

and serve them right...I pay whatever tax I have too...and always have done......why shouldnt everyone...thats the way I see it..we all benefit we should all pay.

and its good to see the govt actually doing something to stop the get away with murder...

Title: Re: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 9:10am

Redmond Neck wrote on Dec 8^th, 2015 at 9:08am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

Only if its working class tax avoidance. (The Pommie class system showing in her)

thats mean and not true.. working class yes.. but I have never dodged paying TAX...

sorry you see me that way.

Title: Re: well this will cheer the Labs up.
Post by John Smith on Dec 8^th, 2015 at 9:12am

cods wrote on Dec 8^th, 2015 at 9:09am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

why don't you compare it with the guy that killed that lion in Africa a few months ago, it has just as much relevance to this as the royal does.

Title: Re: well this will cheer the Labs up.
Post by Redneck on Dec 8^th, 2015 at 9:14am

cods wrote on Dec 8^th, 2015 at 9:10am:

Redmond Neck wrote on Dec 8^th, 2015 at 9:08am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

Only if its working class tax avoidance. (The Pommie class system showing in her)

thats mean and not true.. working class yes.. but I have never dodged paying TAX...

sorry you see me that way.

CORRECTION MY MISTAKE

Only if its upper class tax avoidance. (The Pommie class system showing in her)

Title: Re: well this will cheer the Labs up.
Post by The Grappler on Dec 8^th, 2015 at 10:16am

Private Schools dragged kicking and screaming to reveal sources of illegitimate funding!

In breaking news on KRUD - YOUR News Network, we can reveal that private schools Australia-wide, which have been receiving benefit of tax evasion and tax havening for decades - have been compelled by the Australian Tax Office to ante up the names of those fat cat parents supplying illicit funding from these rorts.... It is believed that a number of past andpresent Ministers and Shadow Ministers, as well as back-benchers and even Prime Ministers.. have been caught up in this breaking scandal....

An ATO source has revealed that it was only under threat of legal action and invasion by AFP officers using court orders that the schools began to comply. The source further revealed that any school caught hiding required information will be disbanded and its administrators sent to an island off the West Coast of Tasmania for the life of their natural school term.....

It is understood the government is considering a taxation on such funds directly on the recipient.... a measure designed to apply pressure on them to not accept such dodgy funds...

That's more like it.......

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 12:24pm

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Title: Re: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 12:28pm

John Smith wrote on Dec 8^th, 2015 at 9:12am:

cods wrote on Dec 8^th, 2015 at 9:09am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

why don't you compare it with the guy that killed that lion in Africa a few months ago, it has just as much relevance to this as the royal does.

oh OK why do you bother asking questions then???>.

:D :D :D :D :D :D

christ! aussie mk11.

Title: Re: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 12:32pm

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

I doubt it.. and why should it...

the TAX dept wouldnt be looking this close at 100 if that was the case....they said they have compared their claims on their TAX returns...

prosecution isnt always the way the dept wants to go......

JUST MAKE THEM PAY WHAT THEY OWE...

and a good thing too.

you almost sound disappointed..

Title: Re: well this will cheer the Labs up.
Post by cods on Dec 8^th, 2015 at 12:34pm

Redmond Neck wrote on Dec 8^th, 2015 at 9:14am:

cods wrote on Dec 8^th, 2015 at 9:10am:

Redmond Neck wrote on Dec 8^th, 2015 at 9:08am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

Only if its working class tax avoidance. (The Pommie class system showing in her)

thats mean and not true.. working class yes.. but I have never dodged paying TAX...

sorry you see me that way.

CORRECTION MY MISTAKE

Only if its upper class tax avoidance. (The Pommie class system showing in her)

excuse me Red... NO IT ISNT..... >:( >:( >:(

dont tell lies about me...

unless you want lies told about yourself..

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 12:44pm

cods wrote on Dec 8^th, 2015 at 12:32pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Disappointed that the ATO is wasting time on it. I'll give you examples

Example 1
Father/mother works overseas. Parents split up and father/mother goes to work overseas and agrees to pay for school fees

Example 2
Grandparents often pays for school fees rather than distribute through their Will

Example 3
Someone who works overseas for more than 5 186 days in any calendar year is not considered a resident for tax purposes. Lets say they work overseas for 10 years. They saved up plenty of money and returned to Australia. Plenty of money in overseas account.

Example 4
Money received through inheritance

Example 5
Profits are declared in the year it's earnt and taxed. Once that's happened the money becomes capital. Interest rates in the US are dismal so there would be little to no interest income. Most of the time it's less costly to put it in a no interest account so there's no income to be declared

Title: Re: well this will cheer the Labs up.
Post by Dnarever on Dec 8^th, 2015 at 1:11pm

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Only because they will say they made a mistake and pay the fines.

Title: Re: well this will cheer the Labs up.
Post by Dnarever on Dec 8^th, 2015 at 1:14pm

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

An overseas bank account does not mean there are undeclared income

No but the fact that they will be asked questions about the discrepancies between the payment from the accounts and their tax returns then maybe they will have a problem.

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 1:14pm

Dnarever wrote on Dec 8^th, 2015 at 1:11pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Only because they will say they made a mistake and pay the fines.

If it is a "mistake" then they've not structured their finance correctly therefore there will be more than a fine

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 1:15pm

Dnarever wrote on Dec 8^th, 2015 at 1:14pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

You assume that the money is income related

Title: Re: well this will cheer the Labs up.
Post by Dnarever on Dec 8^th, 2015 at 1:18pm

Maqqa wrote on Dec 8^th, 2015 at 1:15pm:

Dnarever wrote on Dec 8^th, 2015 at 1:14pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

You assume that the money is income related

They could claim to be friends of Harry potter I suppose or that it is a ~~zero interest account~~ no sorry that doesn't work either. The requirement is to list bank accounts and interest earned.

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 1:24pm

Dnarever wrote on Dec 8^th, 2015 at 1:18pm:

Maqqa wrote on Dec 8^th, 2015 at 1:15pm:

Dnarever wrote on Dec 8^th, 2015 at 1:14pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

You assume that the money is income related

They could claim to be friends of Harry potter I suppose or that it is a ~~zero interest account~~ no sorry that doesn't work either. The requirement is to list bank accounts and interest earned.

Australian interest rates are at 2%

US are even lower

Even if they didn't list it - there it's no big deal as there would be little to no income

They would have to list it when the income was declared so it's not as if they have not declared it

No big deal

They won't get a fine or be prosecuted

Title: Re: well this will cheer the Labs up.
Post by John Smith on Dec 8^th, 2015 at 1:57pm

cods wrote on Dec 8^th, 2015 at 12:28pm:

John Smith wrote on Dec 8^th, 2015 at 9:12am:

cods wrote on Dec 8^th, 2015 at 9:09am:

John Smith wrote on Dec 8^th, 2015 at 8:58am:

why cheer up labs cods? do the libs support tax avoidance?

why don't you compare it with the guy that killed that lion in Africa a few months ago, it has just as much relevance to this as the royal does.

oh OK why do you bother asking questions then???>.

:D :D :D :D :D :D

christ! aussie mk11.

But you didn't ask a question, you used this story to made a supposition about a totally unrelated matter.

Title: Re: well this will cheer the Labs up.
Post by John Smith on Dec 8^th, 2015 at 1:59pm

Maqqa wrote on Dec 8^th, 2015 at 1:14pm:

Dnarever wrote on Dec 8^th, 2015 at 1:11pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Only because they will say they made a mistake and pay the fines.

If it is a "mistake" then they've not structured their finance correctly therefore there will be more than a fine

rubbish ... the ATO if it believes you've made a genuine 'mistake' does not give advice on how to structure your finance. They simply ask you to pay the amount you owe and forfeit any penalties.

Title: Re: well this will cheer the Labs up.
Post by malcolmISthetumbleweed on Dec 8^th, 2015 at 2:16pm

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

I think that point has already been made.

Title: Re: well this will cheer the Labs up.
Post by Maqqa on Dec 8^th, 2015 at 4:25pm

John Smith wrote on Dec 8^th, 2015 at 1:59pm:

Maqqa wrote on Dec 8^th, 2015 at 1:14pm:

Dnarever wrote on Dec 8^th, 2015 at 1:11pm:

Maqqa wrote on Dec 8^th, 2015 at 12:24pm:

An overseas bank account does not mean there are undeclared income

Of the 100 parents cited in the article - I doubt many if any will be prosecuted

Only because they will say they made a mistake and pay the fines.

If it is a "mistake" then they've not structured their finance correctly therefore there will be more than a fine

rubbish ... the ATO if it believes you've made a genuine 'mistake' does not give advice on how to structure your finance. They simply ask you to pay the amount you owe and forfeit any penalties.

Where did I say the ATO give financial structuring advice?

This would come from their accountants and advisors