Australian residents are being warned by the ATO to make sure they declare income earned in Japan, with exchange of tax information and cooperation increasing between the two countries.
Recent information sharing between the ATO and the National Tax Agency Japan identified cases where Australian residents had not properly declared income from the sale of property at ski resort areas in the Niseko district, Hokkaido.
“We’ve found at least 10 cases where Australian residents sold property in Japan and did not properly declare income in their tax returns in one or both countries,” the Commissioner, Chris Jordan said.
The sharing of information on real estate transactions in Japan is one example of Australia’s continuing focus on exchange of information with other jurisdictions under bilateral and multilateral treaties.
Other information routinely exchanged with jurisdictions includes bank interest, dividends and other types of income. It is expected that G20 countries will shortly expand and formalise automatic exchange of information, making the flow of information even easier.
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