why has asutralia become a bendover society

This is why we must stand up to the high taxing commie, feminist, homo, do-gooder, bleeding heart, multi-cultural loving dunderhead politicians and civil servants that will ruin this country.



Rich move billions to tax havens
By GERARD McMANUS
05jan03

SOME of Australia's wealthiest individuals and companies are pouring billions of dollars each year into overseas tax havens.

Embarrassing Treasury figures show that Bermuda has become the favoured tax destination for Australians – $2.5 billion was transferred there in the past financial year.
The Federal Government's cash-monitoring agency confirmed that $5 billion left Australia last financial year – a trend that could upset the nation's economy.

The problem is so widespread that tax-scheme promoters are now hawking overseas tax havens to smaller investors and business people as a means of minimising tax.

Treasury findings released before the end of the year revealed Bermuda was receiving the biggest proportion of tax-avoidance money, which totalled $8.5 billion of funds in and out of the country last year.









Monitoring authority Austrac said $5 billion left Australia last financial year, while another $3.5 billion returned.

Authorities have identified 41 designated overseas tax havens including the Cayman Islands, Vanuatu, Jersey and Guernsey.

But this could be the tip of the iceberg, with Treasury admitting to shortfalls in the Austrac reporting system.

Labor's assistant shadow treasurer David Cox described the figures as "absolutely alarming".

"Billions of Australian dollars are vanishing into the Bermuda Triangle each year," he said.

"The Tax Office has known about this, Treasury knows about it, but the Government is saying nothing.

"Meanwhile the poor, honest, average Australian taxpayer is paying the highest level of taxation ever."

Authorities cannot gauge the full extent of the problem because significant funds are being channelled initially through neighboring countries, such as New Zealand, and then to the tax havens.

As recently as November the most senior officials in the Tax Office told a Senate committee they had no idea which tax haven countries were the biggest destinations for Australian tax evasion, how many taxpayers were involved, or the amount that was being lost in revenue.

But the Tax Office has confirmed the emergence of several tax-avoidance promoters who have shifted from other mass-marketed investment schemes to the new field of overseas tax havens as a means of avoiding tax.

Tax Office chief Michael Carmody conceded that overseas tax havens were no longer the domain of the super wealthy, and were being used by small businesses and individuals to evade tax.

Mr Cox said Austrac was not able to identify the full extent of money flows to designated tax havens because significant amounts of money were channelled through other countries first.

For example, only $69,433 was identified as destined for Nauru, but intelligence suggested that funds were initially sent to New Zealand.

Treasury figures show money flows of $528 million to Jersey, $395 million to the Cayman Islands, $295 million to Vanuatu, and $216 million to Guernsey.

Austrac monitors data from International Funds Transfer Instructions of $10,000 or more.

Treasury claims most of the tax haven countries involved have made "advanced commitments" to eliminate their harmful tax practices.

Andorra, Liberia, Liechtenstein, Monaco, the Marshall Islands, Nauru and Vanuatu remain uncommitted.