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.