Login
iscover
Over $1 billion will be pumped into the Tax Office to scrutinise tax avoidance schemes and strategies as the government looks to expand its crackdown on tax avoidance.
Huge spending boost for ATO’s tax compliance work
02 April 2019
•
7 minute read
As announced in the federal budget, the government will provide $1 billion over four years from 2019-20 to the ATO to extend the operation of the Tax Avoidance Taskforce and to expand the Taskforce’s programs and market coverage.
The additional funding is expected to rake in $3.6 billion over the forward estimates period.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
According to budget papers, the measure will boost the tax avoidance taskforce’s ability to target multinationals, large public and private groups, trusts and high-net-worth individuals.
The tax integrity measure will allow the ATO to increase its scrutiny on specialist tax advisers and intermediaries that promote tax avoidance schemes and strategies.
Tax and super liabilities
Further to the $1 billion funding, the Tax Office is set to receive an additional $42.1 million over four years to increase its activities to recover unpaid tax and superannuation liabilities from larger business and high-net-worth individuals.
It is understood that this new measure will not extend to small businesses.
This measure is estimated to have no revenue impact in fiscal balance terms over the forward estimates period.
In underlying cash balance terms, this measure is estimated to have a gain to the budget of $103.6 million over the forward estimates period.
The measure is estimated to increase goods and services tax payments to the states and territories by $41.8 million over the forward estimates period.
More to come.
You need to be a member to post comments. Become a member for free today!
