ATO Reveals Shocking Figures on Foreign Tax Residents in Australia

The Australian Taxation Office (ATO) has released data showing that 7.1 million accounts held by foreign tax residents in Australia are holding a staggering $241 billion in assets.

Top 10 Jurisdictions with the Largest Average Account Balances

According to the data, the top 10 jurisdictions for large account balances were all “secrecy jurisdictions”, countries with low or non-existent taxes, trusts, and shell companies that can be established to protect the identity of asset owners. The Marshall Islands topped the list, with an average account balance of $2.9 million and 164 accounts, totaling nearly half a billion dollars in Australian financial institutions.

• Average account balance: $2.9 million
• Number of accounts: 164
• Total value: Nearly half a billion dollars

Concerns about Tax Havens and Financial Crime

The ATO has raised concerns about the prevalence of tax havens at the top of the list for large account balances. Mark Zirnsak, who analyzed the data, said: “The places where account holders are from that have the largest average account balances are all notorious tax havens.” There are concerns that some of this money may be laundered through Australia or used to conceal ownership by Australians.

Information-Sharing Arrangements

The ATO has established information-sharing arrangements with six of the 10 jurisdictions listed. However, more needs to be done to prevent financial crime and ensure transparency in global financial transactions.

Calls for Reforms

Zirnsak called for reforms to Australian anti-money laundering laws, including requiring businesses and professionals to report suspicious transactions and not do business with individuals suspected of criminal activity. He also advocated for a public register of beneficial ownership of companies and trusts to prevent money laundering.

Global Efforts to Reduce Tax Minimization and Financial Crime

The data released by the ATO is the result of international efforts to reduce tax minimization and financial crime through the sharing of financial data between countries. While some tax havens have signed up to the CRS system, more needs to be done to ensure transparency and accountability in global financial transactions.

Top 10 Jurisdictions with the Largest Total Account Balances

When looking at total account balances rather than average balances, the list shifted to include countries with which Australia has significant business and migration relationships. The United States topped this list, followed by China, the UK, Singapore, and New Zealand.

• United States
• China
• UK
• Singapore
• New Zealand