• Income tax

    We met all income tax revenue commitments, with collections for compliance totalling $7.3 billion in 2012–13 for both direct and indirect revenue outcomes, an increase of 22.9% on 2011–12.

    Table 2.12 Compliance income tax commitments and results, 2008–09 to 2012–13
      2008–09
    $m
    2009–10
    $m
    2010–11
    $m
    2011–12
    $m
    2012–13
    $m

    Liabilities commitment

    5,519

    5,830

    7,342

    8,662

    9,072

    Liabilities raised

    5,943

    6,774

    8,529

    9,890

    10,739

    Cash commitment

    3,469

    3,732

    4,877

    6,060

    6,416

    Estimated cash collected

    3,799

    3,545

    5,391

    5,961

    7,273

    NOTES
    The commitments and results are the total direct and indirect revenue outcomes.
    The liabilities figures in this table have been adjusted to reflect prior-year corrections identified and made. These corrections relate solely to active compliance results. These corrections do not impact the Budget or our financial statements.
    The liabilities and cash estimate for 2011–12 have been updated with adjusted outcomes only available since the tabling of Annual report 2011–12.

    Looking ahead, implementation of our base erosion and profit-shifting strategy across the large and medium markets will allow us to increase our focus on multinational enterprises that undertake tax restructures and shift profits. It will enable us to feed into domestic law reform and take a leadership role in the Organisation for Economic Co-operation and Development (OECD) review of the international tax framework. In 2012–13, we raised assessments worth $169.6 million in tax and penalties from profit-shifting case work.

    Our risk assessment, audit and advance-pricing arrangements help us address profit-shifting activities. It is an area that causes us continuing concern and the government has given us additional funding to help reduce this risk.

    We will continue to support government initiatives such as the Treasury Specialist Reference Group to address tax minimisation among multinational enterprises and to improve the transparency of Australia's business tax system. This will feed directly into the work of the OECD and the G20, which both consider multilateral responses to base erosion and profit–shifting.

    In recent years, through two multi-agency operations and our own ongoing compliance program, we have uncovered evidence of increased manipulation of trusts to facilitate tax avoidance or evasion arrangements. One tax fraud investigation involved significant restraint of assets under the Proceeds of Crime Act 2002 and dismantled a multi-million-dollar tax evasion structure. The ATO has now received funding for a Trusts Task force to audit taxpayers involved in tax avoidance and evasion using trust structures.

    In 2012–13 we undertook 249 reviews and 18 audits raising $67 million in liabilities in relation to trust specific issues. In addition, we undertook over 1,000 income tax audits on a range of issues where trusts were present.

      Last modified: 02 Mar 2015QC 42713