Australia welcomes greater transparency and tax information exchange agreements.

The Australian Government is planning to roll out a number of tax information agreements (TIEAs) with other governments in an effort to reel in the burgeoning taxation avoidance industry.

Australia has ongoing strategies in place to address tax avoidance and evasion, including a comprehensive tax information exchange agreement negotiation program to establish effective exchange of information with low-tax jurisdictions, for both civil and criminal tax purposes.

The most recent examples were information exchange agreements Australia signed with the Virgin Islands and the Isle of Man.

The Australian Government has welcomed reports that Hong Kong and Singapore have now agreed to adopt OECD standards of transparency and effective exchange of information for tax purposes.

Australia plans to implement effective exchange of information arrangements with each of those countries at the earliest opportunity.

The tax information exchange agreement negotiation program is complemented by a range of compliance strategies run by the Australian Tax Office (including Project Wickenby), designed to establish the veracity of offshore transactions.

Global Pensions Group’s CEO, Kelvin Boyd says: “This announcement should hold no fears for a properly planned and located transparent structure. This approach is the only way to maintain your wealth and comply with your tax obligations.”

For further information from the ATO click below.

http://www.ato.gov.au/businesses/content.asp?doc=/content/00161107.htm