The Australian tax authorities are targeting the country’s ultra-high net worth individuals – those with net worth of around A$30 million ($...

The Australian tax authorities are targeting the country’s ultra-high net worth individuals – those with net worth of around A$30 million ($22.8 million) – in a tax crackdown. The country’s tax commissioner Michael D’Ascenzo said his office will also scrutinize promoters of aggressive tax avoidance schemes. “The new promoter penalties legislation means we can now deal more effectively with those who promote aggressive tax schemes,” he said in a recent speech in Australia. “Promoters of aggressive schemes will no longer be able to pass on all the tax risks to investors. This year we are looking at arrangements that use tax havens and countries with bank secrecy to identify attempts to avoid Australian tax obligations. The focus on the improper use of tax havens is reflected in Project Wickenby.” The commissioner said senior company executives who earn more than A$1 million a year will come under closer scrutiny. Under the second year of Project Wickenby 6,000 high risk individual investor’s declarations will be checked to see if they have declared capital gains while 250,000 individuals can expect to be contacted about discrepancies with income and benefits, that is expected to raise $120 million in tax. The Tax Office also announced it will write to 23,000 people who purchased investment property, shares or units in a managed fund in 2005/2006 to tell them about capital gains tax obligations if they dispose of their assets.