ATO Nets Nearly $1 Billion In Extra Taxes From HNW Tax Evaders

by Mary Swire, Tax-News.com, Hong Kong

04 November 2002

Reports in the Australian media last week revealed that the Australian Taxation Office's crackdown on tax evasion activities practised by the country's wealthiest individuals and businesses netted the government an extra $4 billion in revenue last year.

According to the ATO, of that amount, nearly $1 billion was extracted from just 24 of Australia's richest citizens, by the High Wealth Individuals Taskforce established in 1996 in order to allow the tax office to better understand 'tax planning techniques used by high wealth individuals and the resulting compliance risks'.

However, commenting following the recent release of the ATO's annual report, Taxation Commissioner, Michael Carmody revealed that of the $918.7 million collected from the high net worth individuals in question, around $910 million is currently being disputed in the courts.

'Given the complexity of the issues encountered, the bulk of the taxes raised are in dispute and the ultimate collections will depend on the decisions of the courts,' he admitted. He praised the taskforce's dedication, however, suggesting that the increased tax collection figures show their determination to pursue the 'more difficult and complex issues at the top end of the market'.

According to the Tax Commissioner, the so-called 'black economy' has also been under increased scrutiny, with 2200 tax office staff deployed to investigate and eradicate under the counter payments.

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