Japan’s National Tax Agency announced that it has received “a substantial amount of data” from the Australian Taxation Office about entities related to Japanese taxpayers that are located in so-called tax havens. The National Tax Agency said it is already reviewing the data in the hopes of uncovering tax evaders and others who may be required to file an overseas assets report.
Starting next year, Japanese residents who hold assets overseas worth more than ¥50 million (about $523,000) will be required to file an overseas assets report with the National Tax Agency. Failure to file the report, or filing a false report, could result in up to one year in prison or a fine of up to ¥500,000 (about $5,230). Taxpayers will also be subject to increased penalties for nondisclosure of income when they fail to report overseas assets.
Japan is the first country to announce the receipt of data under a co-operative venture by the United States, the United Kingdom and Australia to share information on trusts and companies holding assets overseas.
Related CGMA Magazine content:
“US, UK and Australia Announce Co-operative Venture Against Tax Evasion”: The US Internal Revenue Service, the Australian Taxation Office, and HM Revenue and Customs (the UK tax authority) announced in May that they had obtained information about a large number of trusts and companies holding assets on behalf of residents throughout the world and planned to share that information with other countries’ tax authorities.
—Alistair Nevius (firstname.lastname@example.org) is editor-in-chief, tax for CGMA Magazine.