Compliance program 2011-12

Large businesses

Income tax

• We completed 46 compliance audits of large businesses and over 370 risk reviews. By the end of 2010-11 we expect we will have raised over $1.2 billion² in liabilities and around $1.3 billion³ in notional tax adjustments, being the value of reduced carried-forward losses and deduction claims.
• We worked on several annual compliance arrangements to provide large businesses with greater certainty about income tax risk (see Annual compliance arrangements).
• We identified a complex scheme involving a number of financial institutions. The scheme was withdrawn from the market following tax rulings and compliance activity, with $470 million in revenue protected for the last three years, and around a further $310 million protected relating to future years.
• We completed around 280 private binding rulings, 60 class rulings and around 300 objections.
• We finalised over 30 advance-pricing arrangements and eight mutual agreement procedural matters with other tax administrations where the aim is to manage double taxation matters between jurisdictions.

Lodgment

• We issued letters to more than 2,900 businesses and phoned 120 businesses with outstanding lodgment obligations. These activities raised approximately $20 million in net liabilities.

Superannuation

• In addressing employee complaints about unpaid superannuation, we actioned around 150 superannuation guarantee cases involving large employers. These activities raised approximately $1 million in unpaid superannuation and penalties.
• We completed around 60 audits on large Australian Prudential Regulation Authority funds to verify the accuracy and completeness of their superannuation reporting. These reviews identified a number of issues. Funds have since implemented changes to their systems and processes to rectify these issues for future reporting.

GST

Our compliance activities gave rise to approximately $660 million in additional GST liabilities. Of this amount, around $140 million came through voluntary disclosures.

• We finalised over 1,430 reviews and audits focusing on integrity of business systems, financial supplies and property transactions.
• These activities resulted in raising approximately $194 million in GST liabilities.
• We also finalised over 1,880 reviews and audits across other risks in the large market.
• These activities raised over $462 million in GST liabilities.
• We issued over 580 private rulings and other forms of interpretative advice to members of this market segment.

Sections within Appendix

• Introduction
• Individuals
• Micro enterprises
• Small-to-medium enterprises
• Large businesses
• Non-profit organisations
• Government organisations
• Tax practitioners
• Key specific programs
• More information