if an australian resident has failed to disclose foreign assets…

HelloCustomer

Thanks for the extra information, there are two elements here.

The first is how the asset of $400,00 come into being, that is, was the property purchased with income and borrowings that have been declared - if not, and if this resident has accumulated an asset worth $400,000 with no borrowings attached and have not declared this asset than this is serious tax avoidance of over $100,000 on the $400,000 asset - on this item alone the tax would be payable (eg $100,000) plus a fine equivalent to the tax avoided (another $100,000 to total $200,000) - a jail term is possible, but this will depend on all of the circumstances including the character of the resident, whether it was a first offence and so forth.

If there is nothing untoward on the property purchase and its all above board as to how it was purchased and it is the income only that has not been declared since 2000, the same formula applies, the tax avoided would be payable together with interest and fines applied but the likelihood of a jail term not likely once again depending on the residents character and other factors.

The difference between the first and second examples is that a deliberate tax avoider would not go to the trouble of making the property purchase transparent to be seen and then try and hide the income - its usually an all or nothing approach.

Whether they could be bothered or not to declare may well be the truth, it may avoid the jail term prospect but not the penalties.

I trust this information is of assistance and that you will kindly accept my answer as I wish your resident friends the best in this matter

Regards

Maurice