The ATO has increased compliance activities around offshore dealings, particularly with regard to tax havens. To encourage taxpayers to voluntarily declare their offshore income, the Commissioner announced the offshore voluntary disclosure initiative on 18 July 2007. The initiative provides for reduced penalties where a voluntary disclosure of offshore income is made. The ATO advises that voluntary disclosures received to date are generally from taxpayers who are immigrants to Australia and from Australians who have worked overseas. If you have clients you believe might have income from overseas sources, you should bring this initiative to their attention when preparing their returns this year.
For more information about voluntary disclosure, go here