Large corporations, medium-sized businesses, property-related tax issues, failing to lodge returns, and outstanding debt will come in for close attention from the Australian Tax Office this year, Tax Commissioner Micheal Carmody has announced.
Setting out the ATO's focus for the year ahead, Carmody stated that the tax office will continue to target those who fail to meet their tax obligations, as well as identifying areas of emerging risk.
“By setting out the risks faced when engaging in particular activities I want to influence the decisions people make about their tax affairs,” Carmody explained.
The ATO's compliance activities raised more than A$8.7 billion in additional liabilities and A$6 billion in collections last year, the bulk of which originated from large businesses.
“The value of our efforts in the large market is reflected in these results and it will continue to be the area of most intense scrutiny this year," Carmody added.
Medium-sized businesses – particularly those with turnovers of between $50 million and $100 million – will face increased scrutiny this year, while correct reporting of income and deductions continues to be a priority.
“Our audits in this market have confirmed risks around profit-shifting, capital gains tax and GST," stated Carmody.
He continued: "Ensuring the correct reporting of rental deductions, such as claims of capital expenses, will be a focus again this year. We will also expand our use of data-matching to check income from property and share sales is declared, and capital gains tax is paid.”
People who habitually fail to lodge tax returns or to pay their tax will also come in for increased scrutiny this year. Increased data-matching is being used by the ATO to help identify high-risk non-lodgers, and, if necessary, prosecution action will be used to ensure they meet their obligations.
The ATO will also target small businesses, and it warned that: "We will be taking firm action against those who fail to work with us to pay their tax debts."
"Employers who fail to meet superannuation guarantee obligations can expect to hear from us this year," announced the tax office.
"We will continue our commitment to follow up all cases where employees report superannuation guarantee payments have not been made on their behalf," it added.
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