Compliance program 2011-12

Trusts

We will continue to support the community in understanding the trust taxation provisions (currently subject to legislative change) while at the same time protecting the integrity of the tax system. We will publish fact sheets, public rulings and other products to clarify new and existing law.

A number of basic reporting requirements relating to trusts will not be affected by the law change. The trust taxation regime requires resolutions to be made in accordance with the trust deed by the end of the tax year. Distributions need to be properly recorded in trust accounts and trust returns need to be lodged on time. We will continue to monitor compliance with these requirements.

To better detect non-compliance, we are employing sophisticated relationship-mapping systems and increasing our use of external data sources. These strategies will be augmented by increased enforcement activities regarding lodgment and debt collection involving trusts (including cases where small advance payments of tax are made ahead of attempts to default on these obligations). Practitioners as well as trustees involved in manipulative practices will be subject to increased compliance focus through audits and reviews.

We will contact around 2,000 trustees and beneficiaries about a variety of issues including lodgment, correct return of trust distributions and the private use of trust assets. These activities will include the audit of a number of aggressive trust arrangements, including where we have identified non bona-fide beneficiaries. Criminal sanctions may also apply to the most egregious forms of trust-related tax schemes.

Sections within Small-to-medium enterprises

• Private groups
• Highly wealthy individuals
• Wealthy Australians
• $100 million - $250 million segment
• Employer obligations
• Lodgment compliance
• Trusts
• Phoenix arrangements
• Overseas interests and international dealings
• Division 7A
• Capital gains tax
• Foreign residents
• Capital and revenue losses
• Restructuring by professional firms
• Fringe benefits tax
• Taxation of financial arrangements (TOFA)
• Small business and general business tax break
• Goods and services tax (GST)
• Refund integrity
• Property
• Retirement villages
• Integrity of business systems
• Financial supplies
• International and cross-border transactions
• GST serious evasion
• Excise
• Excise equivalent goods
• Tax reporting of exports including excisable goods
• Wine equalisation tax
• Alternative fuels
• Superannuation
• Managing business tax debt