ATO To Review And Audit Large Companies, Wealthy Australians

Large corporations and multinational companies, which may be moving their profits overseas, will have to be subjected to reviews by the Australian Tax Office (ATO).

The ATO also announced that moneyed businessmen, as well as small companies that keep offshore accounts, particularly in countries with low-tax jurisdictions like Singapore, will also have to be reviewed.

This announcement was made when ATO held its annual compliance strategy covering 2013-2014.

In it, the ATO said that up for reviews are 250 reviews of large corporations and multinationals, with an audit of 70 big companies in Australia. About half of these numbers are suspected to be shifting their money outside. Profit shifting, according to ATO Second Commissioner Bruce Quigley is detrimental to the country, especially since these large companies contribute to 68% of the superannuation fund tax.

”Because of the size of these transactions and the size of the companies we are looking at, it’s of big consequence for the revenue of Australia.”

“It’s globally the No.1 issue that revenue authorities are dealing with.”

“As a result, we will be undertaking a greater number of risk reviews and audits than ever before.”

The ATO is also preparing to audit 115 individuals with small businesses who may be using methods to avoid getting taxed. The ATO has, in fact, organized a taskforce that will be collaborating with partners overseas to look into businesses that are in low-tax jurisdictions.

Says Mr. Quigley, ”In our conversations with other countries, we are identifying more Australians linked to entities set up offshore.”