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Yes, they can continue to investigate, and yes, the Australian tax authorities will cooperate to an extent. Depending on the sums involved.
How many bank accounts are you talking about? And how much interest? And actually how much will it cost? ( Talk to the bank(s) - they may have a reasonably cheap solution for you ).
You could try talking to the tax inspector and telling him that it will take you time and money to prove that you haven't a liability. He may agree a one off payment of tax, that'll be less than the costs of getting the info. It'd be worth paying it, even if you've no liability, just to get the tax man off your back for good. When I emigrated, I got a UK tax demand for £800 (which I owed), + £40 interest. The interest was because of a delay in me receiving the demand, because HMRC sent it to the wrong address, even though they had the correct address on file. I decided to cough up, as £40 to never hear from them again seemed worth it. ( I could have appealed to the special commissioners, which would have meant them coming over here... ).
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