Did you know that your assignees are now subject to further scrutiny from the ATO?
There are growing concerns that non-compliance by international assignees lead to organisations being compromised in their ability to sponsor working visas. For a while now we have been talking to our clients about the need for their international assignees to be tax compliant while they are in Australia on assignment.
After a number of highly successful data-matching programs in a variety of industries, the Australian Taxation Office (ATO) has now joined forces with the Department of Immigration and Border Protection (DIBP) in an attempt to clamp down on working visa holders who are not lodging returns or not paying appropriate tax in Australia.
In the Commonwealth Gazette Notice C2015G01255, published on 4 August 2015, the ATO has announced a data-matching program that will cover four financial years (from 2014 to 2017).
The ATO intends to obtain the following information from DIBP:
The information gathered aims to identify non-compliance with registration, lodgement, reporting and payment obligations under taxation laws. In particular, the ATO seeks to achieve the following:
It is estimated that records relating to approximately a million individuals will be obtained as part of this program.
Global mobility is on the increase and becoming more complex to manage in-house. We are here to help reduce the complexity. Our strength lies in helping you and your assignees comply with Australian tax laws. Please contact us if you have any questions or want to discuss how we can provide an efficient and cost effective solution to your business.
If you would like to discuss this further, please contact Sam Morris.