• GST audits lead to sustained compliance

    To ensure sustained compliance behaviour by previously non-compliant taxpayers, it is important for us to understand the flow-on effects of our audit activities. The aim is to see sustained improvements in taxpayer behaviour as a result of our active compliance activities.

    We analysed the GST compliance behaviour of businesses in 2012–13, and found that businesses that had their business activity statement (BAS) amended by us showed improved compliance in subsequent GST returns for the next two years. This occurred with both monthly and quarterly BAS lodgers.

    As part of our compliance activities, we raised $2.3 billion in GST audit liabilities in 2012–13. To understand the impact of our audits and BAS amendments on those affected, we analysed the median net GST recorded by quarterly and monthly BAS lodgers who had their GST returns amended across an array of GST risks.

    As illustrated in Figures 1 and 2, the reported GST liabilities increased in the period immediately after compliance intervention for both monthly and quarterly BAS remitters.

    We also compared taxpayers who had their BAS amended, to taxpayers reviewed but found to be compliant. Our analysis shows that taxpayers who had their BAS amended as a result of compliance activity subsequently reported a higher level of net GST than those not directly affected by the compliance activity. This increase is typically sustained for subsequent lodgments.

    Figure 1: GST position before and after 2012–13 compliance action – monthly lodgers

    Figure 1: GST position before and after 2012–13 compliance action – monthly lodgers

    Figure 2: GST position before and after 2012–13 compliance action – quarterly lodgers

    Figure 2: GST position before and after 2012–13 compliance action – quarterly lodgers

    Last modified: 07 Mar 2016QC 37650