Bringing Money into Australia? The ATO has you in their sites.

from one unrelated party to another. These are really concern to the ATO and will be monitored very closely. The ATO has gone so far as to say that they will even speak to the person who provided the loan and seek written confirmation that it is indeed a loan.

The ATO has stated that there are provisions in Australian which can be applied to treat a loan as income and people need to be aware that they might be required to pay a lot of tax if they cannot substantiate the funds transferred was actually a loan.

The ATO’s powers are far reaching and they have placed tax practitioners, accountants and other advisors on notice. The ATO has stated that they must make full enquiries to satisfy themselves that any funds transferred into Australia or received by a client are indeed what the client has reported. Otherwise, they themselves, might be caught up in the unauthorised or mischaracterised transaction and be considered duplicity in the client’s dealings; potentially placing themselves at risk of being fined or prosecuted as well.

“It’s timely as Australia continues to attract strong levels of investment, particularly in respect to real estate, both residential and within property development.”

“The ATO has now drawn a line in the sand and committed to scrutinising these transfers closely, so people should ensure they have received the proper tax advice before making a transfer.”

The ATO’s data resources meant another amnesty for offenders - along the lines of Project DO IT in 2014 - was unlikely, Mr Chye said. Project DO IT was a oneoff for individuals to disclose omitted offshore income, capital gains and over-claimed deductions with reduced penalties.

“The ATO has significantly more information-gathering powers than it did during the time of the amnesty, increasing its level of resourcing and entering into tax information exchange treaties with other jurisdictions,” he said.

“People seeking to transfer funds into Australia therefore need to ensure their tax structuring is appropriate well before they physically transfer the funds, or risk interrogation from the ATO and other authorities.”

He said individuals claiming transferred funds - in amounts from $2 million and $50 million - were a loan from an unrelated party should be aware that this would raise an alert at the tax office. “If taxpayers are saying it’s a loan, then the ATO will speak with the person providing the money as a loan,” he said.

“There are provisions in Australian law which can be applied unexpectedly that can treat a loan from overseas as income; if shareholders take money from the company as a loan but it’s not documented properly, for example, it can be treated as income.”

“The ATO’s powers are far reaching and intended to also put advisers on notice and encourage them to dig deeper with clients and their financial affairs, otherwise advisers could be unwillingly supporting mischaracterised amounts coming in, which carries the risk of prosecution.”

Mr Chye said Australia’s unique tax laws meant early investment in tax advice would pay off.

“It reinforces the need for an appropriate level of tax planning before any transactions are undertaken - it’s also an educational opportunity for many new entrants as it can set them up with building and structuring tax advice overtime,” he said.

If a taxpayer was concerned by their level of compliance Mr Chye recommended getting a review conducted to determine their current obligations and create a plan for the future.

“A voluntary disclosure can mitigate against substantial penalties, time, cost and angst of a protracted ATO review or audit,” he said.

The founder of the Find Group of companies draws on his diverse background, which ranges from teaching, to serving in the army, to taxation and accounting, to coach and help clients live their best financial lives. A multi-award winner, Warrens’s innovative approach in business means he was a champion of virtual financial advise long before the pandemic. Warren established the Find Foundation, which owns and operates accros Victoria.

TOP 50 MOST INFLUENTIAL FINANCIAL ADVISER IN AUSTRALIA 2021 & 2022

Naturopath

By Kathryn Messenger

Whilst it’s commonly known that excessive drinking causes liver damage, there are many other toxins that are processed through the liver. The human body is exposed to toxins daily from the air we breathe, the water we drink, plastics, chemical cleaning products, cosmetics, medications, recreational drugs, cigarette smoke, and the list goes on. At some point, the liver becomes overloaded, and the detoxification process is impaired.

Signs of poor liver detoxification

• Liver damage

• Gallbladder disease

• Fatty liver and high cholesterol

• Migraines

• High blood sugar

• Allergies

• Poor digestion

• Nausea

• Sugar cravings

• Menstrual irregularities

• Eczema/dermatitis

• Stress

• Fatigue

The detoxification process

The liver detoxifies though three phases and is the most important organ in metabolism. The first phase is a process of chemical breakdown of the toxins; the second phase prevents oxidative damage to the body from the products produced in the phase one; and the third phase removes the final products of detoxification from the liver though the gall bladder to the bowels.

How to support the liver

Antioxidants

Antioxidants are an important part of the second phase of detoxification and can reduce inflammation which leads to liver dysfunction. All fruit and vegetables contain antioxidants, but the most effective vegetables are garlic, onion, cabbage, brussel sprouts, and broccoli; while berries, apples, citrus fruit, and grapes are the most beneficial fruit choices.

Dietary fibre

Fibre is important in regulating blood sugar, as fuel for a healthy gut microbiome, preventing constipation, absorbing bile and reducing the formation of gallstones. It is found in wholegrains, fruit and vegetables.