Indian and Australian Perspectives on Demonetization and Its Tax Implications

This article reviews the underlying rationale and tax aspects of the implementation of demonetization of INR 500 and INR 1,000 currency notes in India in November 2016. The authors consider suggestions for demonetization of AUD 100 bank notes in Australia and, in that context, contrast the cash transaction reporting requirements, penalties for undisclosed income and voluntary disclosure rules in Australia and India.