With the ongoing one-to-one engagement supported by compliance reviews and audits, the Australian Taxation Office has made it clear that it is focused on ensuring that the country’s top 500 privately owned groups are paying the right amount of tax.
It has introduced the Top 500 performance program with the objective of giving confidence to the community that even the large private groups are paying the appropriate tax. Mr Louise Clarke, Deputy Commissioner, ATO said, “this investment recognises the scale of private groups that pay over $4.4 billion in income tax and over $2.3 billion in net GST.”
This scale can rival the size of large public companies, that’s why the community expects the ATO to keep a close track on these groups. The foremost goal of the Australian Tax Office is to make sure the correct amount of tax paid is being paid, not a dollar more, or a dollar less.
It is believed that the Top 500 program will increase the willing participation focused on prevention rather than correction.
The new engagement approach followed by the ATO is tailored to match the willingness and complexity of private groups, which is encouraged to improve tax governance, good compliance, and justified trust for the years to come.
For groups that are not transparent and do not follow the tax compliance, the taxation office will use a more intensive approach on a one-to-one basis. This will be done to demonstrate the groups are complying with the tax obligations and paying the right amount.
In case, the ATO suspects tax avoidance activities, non-compliance with tax laws, or unwillingness to pay the tax, the one-to-one engagement will be escalated into severe complexities, resulting in compliance audits and reviews. The reviews will be undertaken when a wider understanding of single or multiple issues is needed.
If you are one of the top 500 private groups and struggling with your taxes, our tax accountants at KPG Taxation can help you right away. Contact us today to schedule an appointment for a consultation.