On 4 July 2018, Ministers O’Dwyer and Taylor jointly announced that representatives from the Australian Taxation Office (ATO) and Australian Criminal Intelligence Commission (ACIC) were in Montreal the previous week, to sign up to the Joint Chiefs of Global Tax Enforcement alliance (known as the J5). As well as Australia, membership of the J5 includes Canada, the US, UK and the Netherlands.

The J5 will be focussed on three global tax enforcement initiatives: cybercrime and virtual currencies, enablers of offshore tax crime, and data platforms. J5 will target those who enable and facilitate offshore tax crime and disrupt the serious organised criminal syndicates who evade tax, commit tax fraud and launder the proceeds of their crimes.

Minister O’Dwyer noted that this was against the backdrop of the release of the ‘Panama Papers’ which has resulted in the Australian Government’s Serious Financial Crime Taskforce (the Taskforce) has completing compliance action for 341 of the higher risk taxpayers, with a further 134 in progress. This work has resulted in $68 million worth of liabilities being raised and $13 million in cash collected to date. Three individuals are under criminal investigation by the Taskforce. The ATO has also received a further 53 voluntary disclosures of understated income exceeding $40 million.

She also noted that the Australian Government is also well placed to take action in response to further information released in June 2018, with the ATO continuing to work with the Australian Federal Police, ACIC and AUSTRAC to analyse any information released against their intelligence sources. Where necessary, activity of a serious criminal nature will be referred to the Taskforce for investigation.

FJM 14.7.18

[Minister for Revenue and Financial Services: Kelly O’Dwyer & Minister for Law Enforcement and Cyber Security: Angus Taylor: Media Release; LTN 126, 4/7/18; Tax Month – July 2018]

 

Comprehension questions (answers available)

  1. Did Australia sign up to the J5 Enforcement Alliance?
  2. Are the five nations: Australia, Canada, Netherlands, United Kingdom and the United States of America?
  3. Was it representatives of Australian Federal Police, ACIC and AUSTRAC who were in Montreal, to sign up?

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