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Migrants and migration agents targeted in tax blitz
The records of an estimated one million temporary visa holders, their sponsors and migration agents are expected to be scrutinised by the Australian Taxation Office (ATO) as part of a broad tax compliance campaign targeted at the industry, according to a recent statement issued by the ATO
RMAs are among those being targeted by the ATO to “detect, and deal with compliance risks within the visa holding population...Data from DIBP will be used in ATO risk detection models to select populations for administrative action relating to tax return integrity, income tax and goods and services tax non-compliance and fraud,” the statement noted.
It says that an analysis of previous data indicates that there is an elevated level of risk relating to non-compliance and fraud associated with this population. Based on those identified risks, the ATO intends to acquire visa information for visas granted in the period 1 July 2013 to 30 June 2015 and future periods between 1 July 2015 and 30 June 2017. This means previously acquired data for the period 1 July 2013 to 30 June 2014 will be refreshed in the new table structure in an effort to take advantage of opportunities with new risk detection models.
The investigations are expected to cover 457 visa-holders and sponsors, students and education providers as well as migration agents.
“These records will be electronically matched with certain sections of ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws,” the ATO said.
In related news, Treasurer Joe Hockey announced on Saturday, that he has ordered the sale of six residential properties unlawfully held by foreign nationals. The purchase prices of the properties range in value from $152,000 to $1.86 million.
“Australia’s foreign investment policy for residential real estate is designed to increase Australia’s housing stock, but those who break the rules and purchase established property illegally are doing so to the detriment of all Australians.”
However, as the investors of the 6 properties voluntarily came forward to take advantage of the amnesty Hockey announced in May. They now have 12 months to sell the properties, rather than the normal three month period, and will not be referred for criminal prosecution.
According to Hockey, since transferring residential real estate compliance functions to the ATO in May, over 2,000 pieces of information relating to suspected breaches have come to light via data matching with third party sources including the Foreign Investment Review Board, Immigration, AUSTRAC and state and territory land title offices.
Comments
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Wednesday, 12 August 2015I imagine the ATO would want to check if an RMA has a GST liability in relation to an onshore visa applicant, whether they have declared and paid that GST to the ATO, or treated the onshore applicant as on offshore applicant.
RMA's have a variety of different GST scenarios - providing advice to a visitor in Australia for an applicant / application offshore, providing advice to a resident of Australia to an offshore applicant, etc., each of which has its own GST implications. -
Thursday, 13 August 2015
I am a young Egyptian search migration and work I want migration and work on your own legal papers they all sound I work in construction or timber or guarding and security or clean I have no problem with this I want work visa please can you help me please I am skillful in manufacturing and chopping wood and also in construction work / Can you help find a sponsor me please I am I do not know anyone
Immigration blog
And this impacts on RMAs in terms of “detect(ion), and deal(ing) with compliance risks within the visa holding population because....?
RMAs are not 'part of the visa holding population', other than the need to have Australian Residency to be an RMA - and that RMAs provide a professional services, as do lawyers, RE agents, business advisors, accountants, education agents and ed. institutions, etc)
Is this about RMAs' advice to the visa holding population and/or their involvement with this population which may explain why non resident visa holders may be a 'tax' compliance risk - in what way? (because they don't pay tax, they failed to pay tax, we didn't advise them to pay tax or refer them to the FIB or what? I'm confused (and a tad tired of RMAs being so maligned for doing their work)
Are Solicitors and Barristers who may or may not be RMAs but may be advisers for this particular visa holding population, as well as RE agents and Accountants going to be targeted?
Or is this a migrant thing? because many RMAs are professional 'migrants' (mostly)? what about RMAs who assist clients pro-bono and just lodge applications on their behalf? what level of detail will the ATO require in order to satisfy itself that there was no 'fraud' in terms of RMAs discharging their responsibilities under the Act and the Code of Conduct and not disclosing clients' sensitive or personal information?
What about Educations agents who may or may not be RMAs but *still* provide advice and lodge applications on behalf of students, without their names appearing on lodgment? ... what about offshore agents? the mind boggles...
I'm having a 'please explain' moment - Happy to be told off and that I'm barking up the wrong tree because I'm tired and we're just barely halfway through the Calendar year, only being August and all...
Bea Leoncini