Dunlea Centre
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  |  Politics

Spotlight on Wealthy Tax Cheats


Monday, 20th April 2015 at 11:35 am
Xavier Smerdon, Journalist
The Australian Taxation Office has announced a new targeted campaign to ensure wealthy Australians and their private groups do not dodge their tax obligations.

Monday, 20th April 2015
at 11:35 am
Xavier Smerdon, Journalist


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Spotlight on Wealthy Tax Cheats
Monday, 20th April 2015 at 11:35 am

The Australian Taxation Office has announced a new targeted campaign to ensure wealthy Australians and their private groups do not dodge their tax obligations.

Acting Second Commissioner Michael Cranston said the ATO was taking a prevention-before-correction approach and ramping up face-to-face engagement with key taxpayers to protect revenue.

“While most wealthy Australians and their private groups do the right thing – contributing around $31 billion in income tax last financial year – some choose to avoid tax,” Cranston said.

“We are shifting our approach and will be visiting our largest private groups to look at their tax affairs in real time, raise any concerns and resolve issues before companies lodge their tax returns.

“There are about 175 private groups controlling almost 6000 entities with more than $1 billion in turnover or $500 million in net assets and we will begin our visits by the end of the month.

“We risk-review all wealthy Australians and their private groups. About 30 per cent are considered high-risk and we regularly ensure they are compliant through reviews, audits and the provision of advice.”

Cranston said if taxpayers are open and transparent with the ATO, they can expect better services and faster turnaround on key decisions.

“We have announced today that the ATO will sign-off on the previous year’s tax returns of taxpayers who have been open and transparent with us about their affairs, have good compliance records and are considered low-risk. This will provide certainty for about 30,000 privately owned and wealthy groups that they will not be subject to audit for specific income years,” he said.

Cranston said the ATO has developed online tools and information to help taxpayers and their advisers understand their tax and superannuation obligations.

“We’ve got a new online resource dedicated to privately owned and wealthy groups with key information and guidance as well as advice on what might attract our attention,” he said.

“We are providing real-time information on risks, activities and results in this market as part of our commitment to being transparent in our approach to our compliance activities.”

The ATO said the following behaviour would attract its attention:

  • Tax or economic performance is not comparable to similar businesses

  • Low transparency of tax affairs

  • Large, one-off or unusual transactions, including transfer or shifting of wealth

  • A history of aggressive tax planning

  • Tax outcomes inconsistent with the intent of the law

  • Choosing not to comply or regularly taking controversial interpretations of the law

  • Lifestyle not supported by after-tax income

  • Treating private assets as business assets

  • Accessing business assets for tax-free private use

  • Poor governance and risk-management systems.

For more information go to ato.gov.au/privategroups.


Xavier Smerdon  |  Journalist  |  @XavierSmerdon

Xavier Smerdon is a journalist specialising in the Not for Profit sector. He writes breaking and investigative news articles.


Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

A Dose of Reason, Perspective and Clarity

Mark Fowler

Friday, 3rd August 2018 at 2:59 pm

Canadian Court Protects Charities’ Political Activity

Paul Carter

Monday, 23rd July 2018 at 4:02 pm

Australians Are Giving Less

Wendy Williams

Thursday, 14th June 2018 at 8:00 am

The Budget – Beyond Economic Units

David Crosbie

Thursday, 10th May 2018 at 9:04 am

POPULAR

Concerns Raised Over NDIS Barriers for Homeless People With Disability

Maggie Coggan

Tuesday, 7th August 2018 at 8:24 am

NFPs Urged to Focus on Purpose

Luke Michael

Tuesday, 7th August 2018 at 8:27 am

Coordinated Care at Risk Under Marketisation of the NDIS

Luke Michael

Thursday, 9th August 2018 at 8:20 am

New NDIS Quarterly Report Revives Call to Lift NDIA Staff Cap

Luke Michael

Thursday, 16th August 2018 at 8:44 am

Dunlea Centre
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!