In the 2013 Budget, it was announced that the Government would provide $67.9m over 4 years to the ATO to undertake compliance activity in relation to trust structures. The ATO has released further information on the potential targets of this compliance action utilising its intelligence systems, including new tax return labels. It said some of the factors that will attract its attention include arrangements where trusts or their beneficiaries who have received substantial income are not registered, or have not lodged tax returns or activity statements, and where there are offshore dealings involving secrecy jurisdictions.
According to the ATO, the taskforce is intended to target higher risk taxpayers and not ordinary trust arrangements and tax planning associated with genuine business or family dealings. However, it said those taxpayers that are unsure regarding their arrangements can seek a private binding ruling, or contact the ATO via the trusts taskforce at TrustRisk@ato.gov.au (mark all information “in confidence”) to discuss the arrangement. Alternatively, the ATO said voluntary disclosures can be provided if taxpayers need to adjust a tax position that had previously been taken with the Voluntary disclosures – approved form.
[LTN 97, 22/5/13]