Miscellaneous 2021

Undeclared foreign income: the stick approach

Source: Taxation In Australia Journal Article

Published Date: 1 Dec 2021


Over the course of almost a decade, the ATO has been consistently focused on ensuring that foreign income of Australian residents is taxed correctly in Australia. TA 2021/2 is the latest initiative by the ATO in its focus on ensuring that Australian residents are assessed for tax on all of their worldwide income. TA 2021/2 highlights the ATO's concerns with certain arrangements where Australian resident taxpayers derive income or capital gains (foreign assessable income) offshore, but fail to declare the foreign assessable income in their Australian income tax returns due to the characterisation of the funds as a gift or loan from a related overseas entity. It is essential that taxpayers obtain sufficient evidence to prove that their loan or gift is genuine or they should seek professional advice.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2021

Share this page