Australian Taxation Office Pledges to Implement Travel Bans on Tax Evaders

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The Australian Tax Office (ATO) is cracking down on tax dodgers fleeing Australia as it looks to rein in a massive debt.

The collectable debt book bill has blown out to $50 billion, with the ATO looking to crack down on people seeking to flee the country or go on overseas holidays rather than paying the tax they owe or superannuation to their employees.

The Australian Taxation Office (ATO) is cracking down on individuals it suspects are trying to dodge their tax obligations by issuing departure prohibition orders (DPOs).

An airport sign — One DPO was issued just as a person was trying to board an international flight. (Getty)

Recent statistics reveal that the ATO has already implemented 21 DPOs, surpassing the total number issued during the entire previous financial year.

Some are issued in the nick of time, with one person barred from boarding a flight in the early hours of the morning thanks to a DPO.

ATO Assistant Commissioner Anita Challen stated, “Taxpayers with substantial debts should not assume they can leave the country without settling their dues to the community.”

“We think most Australians would expect businesses to pay their employees’ superannuation before they plan an overseas holiday”

The ATO is warning Australians against trying to flee the country with outstanding tax debts. (Getty)

Apart from targeting those attempting to flee without paying taxes, the ATO is also focusing on businesses that collect employee taxes or GST from customers but fail to remit these funds to the government.

DPOs are considered a last resort measure, as the ATO finds it challenging to enforce other restrictions when the debtor is outside Australia.

Challen insisted all Australians should heed the warning.

“If you have a significant debt with the ATO and we’ve issued you with a DPO, you’ll need to pay or make satisfactory arrangements to pay before planning your overseas travel,” she said.