Compliance program 2011-12

Wealthy Australians

Having developed our approach to private groups through our ongoing focus on highly wealthy individuals, we have been funded by government to expand this compliance approach to a broader group of wealthy Australians.

Over the last two years, we have been progressively applying this approach to individuals controlling a net wealth of between $5 million and $30 million. Currently, this population consists of more than 82,000 private groups. This reflects the diversity of the broader small-to-medium enterprise population. Having applied our risk-differentiation framework, we find most wealthy Australians meet their basic taxation obligations. Where we do identify risks, they generally reflect those we found among highly wealthy individuals.

Our interactions are driven by the nature and complexity of the risks involved. Where appropriate, we will contact taxpayers or issue pre-lodgment advice letters to resolve relatively straightforward issues. We will use this strategy to verify instances where income from dividends and interest is not disclosed. We will also pursue outstanding tax returns and associated schedules. We expect to contact over 2,000 wealthy Australians to resolve these issues.

Where we detect complex tax planning arrangements relating to capital gains tax, Division 7A, international and trust risks, we will move to more intensive interaction - such as review or audit. In 2011-12, we will complete at least 400 risk assessments and reviews and 55 audits of high risk 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