Description
An individual ("the taxpayer") is a resident of Australia for tax purposes. 2. The taxpayer derives income or other taxable amounts from a foreign source ("foreign source income"). The foreign source income may include (but is not limited to): a. interest accrued in an offshore bank account b. income derived from a foreign investment (e.g. dividend or rental income) c. income from an asset that has been inherited from an overseas source d. a foreign pension or annuity e. certain foreign employment income f. foreign business income g. foreign trust income h. capital gains arising from disposal of overseas assets i. attributable income from interests in offshore entities even if the income has not been distributed 3. The foreign source income is received in Australia or accumulated offshore. 4. The taxpayer does not correctly disclose their interest and/or involvement in deriving foreign source income and does not pay Australian tax on this income. 5. The non-disclosure by the taxpayer may arise through: a. accumulating the income in an offshore bank account; b. accumulating or reinvesting income in other assets or entities offshore; c. transferring funds to the taxpayer through the use of purported loan arrangements; and/or d. accessing funds in an offshore bank account through the use of debit or credit cards by the taxpayer in Australia or elsewhere. 6. In some instances, another entity (for example, a promoter) may act on behalf of the taxpayer who is a beneficiary of an offshore structure or investment, to conceal the true control of the entity or the beneficial interest in the income or assets. 7. In some arrangements, documentation supporting the above transactions is absent, incomplete or falsified.