The ATO has announced it is changing its approach to ensuring wealthy Australians and their private companies pay the right amount of tax.
Acting second commissioner Michael Cranston said the ATO will be 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,” Mr 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.
“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.”
Mr Cranston said the ATO will sign off on the previous year’s tax returns of taxpayers who have been open and transparent 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.
The tax office also outlined behaviours that are likely to attract its attention.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all