ATO warns of probes into Paradise Papers

Locals named in the “Paradise Papers” documents could face criminal investigation, the ATO has warned.

Glencore’s headquarters in Baar, central Switzerland. The leaked documents include information relating to Glencore’s activities in the Democratic Republic of Congo and Australia. (AFP PHOTO/FABRICE COFFRINI)

Australians named in a new gigantic leak of tax haven documents may face criminal investigation, the Taxation Office says.

The ATO said it had been “working closely” with Australian and international tax and law enforcement authorities in anticipation of the leak, dubbed the “Paradise Papers”.

Glencore, the Queen and members of the Trump administration are among companies and people so far named in reports published by members of the International Consortium of Investigative Journalists.

The Paradise Papers deal with clients of Appleby, one of the so-called “offshore magic circle” law firms. It outed itself as the target of the ICIJ investigation in a statement on its website a fortnight ago.

It is the latest in the ICIJ’s series of data dumps from the offshore world, including 2015’s Panama Papers, which exposed clients of Panamanian law firm Mossack Fonseca.

“We anticipate further data may be published by the ICIJ and the ATO will continue to work closely with other tax administrations to share intelligence on advisers operating globally,” ATO deputy commissioner for international affairs, Mark Konza, said.

“Domestically, we are working with the Australian Criminal Intelligence Commission, the Australian Federal Police, and Austrac to further cross-check data and build our intelligence base, undertake audits, apply significant tax penalties where appropriate and refer cases to the Serious Financial Crime Taskforce for criminal investigation.

“Internationally, the Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC) is already collaborating within existing legal frameworks following the statement by Appleby last month.

“JITSIC brings together 37 national tax administrations that have committed to more effective and efficient ways to deal with tax avoidance.”

Mr Konza said “most people do the right thing”.

“Many taxpayers identified as part of the leak will be meeting their Australian tax obligations,” he said.

“However, we investigate all leads and have the resources and expertise to take action against taxpayers or intermediaries found to be caught-up in the illegal use of offshore structures or providers.”