Compliance program 2011-12

Employer obligations

Small-to-medium enterprises employ 28% of the Australian workforce and withhold and pay over $31 billion in pay as you go withholding obligations on behalf of their employees. They also make superannuation guarantee contributions on behalf of their employees. Where they provide taxable fringe benefits they may also have fringe benefits tax obligations.

Although the majority of employers do the right thing, some do not meet their obligations. In these cases we follow up with field, phone and desk reviews. This year, we expect to review the tax affairs of over 3,400 small-to-medium businesses to ensure they are reporting the correct amounts of pay as you go withholding. We will also review contracting arrangements to ensure employers are not engaging in sham contracting that sidestep obligations to their workers.

We will continue our focus on ensuring employers meet their superannuation guarantee obligations. This year, as part of our broader superannuation guarantee compliance strategy, we will ensure compliance reviews include small-to-medium enterprises showing a pattern of non-compliance. We will also investigate all employee complaints about employers not complying with their superannuation guarantee obligations.

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