Compliance program 2011-12

Private groups

Using sophisticated data mining techniques, we are now better able to detect relationships between grouped entities, including individuals, trusts, partnerships and beneficiaries. This capability allows us to better understand the compliance behaviours of private groups and track the funds flow through to the individuals in control.

Private groups, and the individuals who control them, can expect an increase in the level of scrutiny. Where we detect non-compliance, our treatments are differentiated to reflect the diversity of our population and the level of risk we identify.

The compliance approach in this segment is comprehensive and flexible. It is designed to treat basic non-compliance, such as omission of income and inappropriate access to small business concessions, through to complex tax arrangements often found among larger groups. We also focus on taxpayers with outstanding debts.

We recognise that smaller, privately-held businesses cannot access the same level of resources and expertise as larger businesses, although they often deal with equally complex tax issues. We therefore work with taxpayers and their advisers to co-design support products and services addressing specific needs of identified populations within this diverse segment. A key element of this work will be a refresh of our Wealthy and wise booklet. This booklet clarifies the compliance approaches we adopt for private groups in particular, highly wealthy individuals and wealthy Australians.

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