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Date Published : Thursday, August 14, 2008
High net worth individuals could have to tighten their belt buckles following the announcement that the Australian Tax Office (ATO) is looking to collect an additional $5.7 billion from them over the next four years.
In its 2008-09 compliance report, the ATO has said that it hopes to recoup most of the funds from large corporations and billionaire businessmen that are not paying their tax appropriately.
Tax commissioner Michael D'Ascenzo claimed the office is continuing its "strong focus on detecting and discouraging the abusive use of tax havens and dodgy tax schemes".
"We are also encouraging people who may have done the wrong thing to come forward before we contact them and take advantage of reduced penalties for coming clean," he added.
As part of the crackdown the ATO will be studying salary packages and savings accounts of executives and directors at some of Australia's largest enterprises.
According to the Australian, a review of the remuneration packages of 175 executives saw the ATO pocket $20 million in extra taxes, which works out at over $110,000 per executive.
In a further indication that the country's top earners are being targeted, Michael Bersten of PricewaterhouseCoopers claimed in the same publication that at June 30th of this year there were 400 ongoing reviews of high net worth individuals, compared to just 38 at the same juncture last year.
The Sydney Morning Herald has reported that ATO investigations into businessmen with bank accounts in the renowned tax haven of Liechtenstein have already reeled in $50 million in unpaid tax.
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