http://www.dailytelegraph.com.au/news/nsw/private-schools-dobbing-on-parents-to-...


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..

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


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

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



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

sorry you see me that way.

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


CORRECTION MY MISTAKE

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

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

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



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..

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


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

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


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.