No.28: Update on Dividend Washing

We refer to our Client Alert No 24, the link to which is shown below, in which we discussed the ATO’s views on dividend washing.

http://www.blazeacumen.com.au/client-alerts/client-alerts-issue-24.html

The ATO has made a further statement regarding dividend washing which can be found at the following link:

https://www.ato.gov.au/Media-centre/Articles/ATO-targets-dividend-washing/

The ATO has now indicated that from mid-August 2014, it will commence the next phase of its dividend washing compliance program by issuing letters to 500 taxpayers who did not respond to its initial letters, and up to 1,500 other taxpayers who the ATO believe may have entered into dividend washing transactions.

The ATO also advise that taxpayers who have entered into dividend washing transactions, but do not receive a letter from the ATO, will not be subject to penalties provided they amend their tax returns by 22 September 2014.

What you need to do?

If you need any assistance determining whether your activities may constitute “dividend washing” or you believe you have been involved in “dividend washing” please contact your Blaze Acumen advisor and, if required, we can assist you in making a voluntary disclosure and seeking amendments to your tax returns.