What attracts the ATOs attention.

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The ATO has updated the information on the behaviours, characteristics and tax issues of privately owned and wealthy groups that attract our attention. This includes:

  • key risks relating to business structures such as consolidations, international transactions, ineligible businesses accessing lower company tax rates and self-managed superfunds
  • new issues for transactions relating to CGT small business concessions, excise and excise equivalent goods, fringe benefits tax, carry forward of revenue losses and private use of business assets
  • information on how we target illegal phoenix activity, refund fraud, identity crime and organised crime and the cross-agency taskforces we are involved in
  • information on taxpayers who avoid or delay payment of tax by non-lodgment of their tax returns where they have reportable fringe benefit amounts included in payment summaries and STP reporting.

The following behaviours and characteristics may also attract our attention:

  • tax or economic performance not comparable to similar businesses
  • low transparency of your tax affairs
  • large, one-off or unusual transactions, including the transfer or shifting of wealth
  • aggressive tax planning
  • tax outcomes inconsistent with the intent of the tax law
  • choosing not to comply, or regularly taking controversial interpretations of the law, without engaging with us
  • lifestyle not supported by after-tax income
  • accessing business assets for tax-free private use
  • poor governance and risk-management systems

Please give Arum a call if you have any concerns or would like to discuss the best outcomes for your tax affairs.