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  • Large corporate groups income tax gap

    In this document, you'll find information about estimating the large corporate groups income tax gap. This gap forms part of our overall tax performance program.

    A large corporate group is defined as a corporate group with gross income of over $250 million in a given financial year. In 2017–18, large corporate groups:

    • reported $1.9 trillion in gross income
    • generated $192 billion in taxable income
    • paid around $53 billion in income tax.

    For 2017–18 we estimate a gross gap of 7.5% or $4.1 billion which is the gap prior to considering the impact of engagement from the ATO. We estimate a net gap of 3.7% or $2 billion which reflects the final amount uncollected after impacts of our action. In other words, this means that large corporate groups paid over 96% of the theoretical total amount of income tax payable by them in 2017–18.

    For more information on how we calculate this estimate including both gross and net gap along with the overall trend of the past seven years of estimates, refer to Table 1.

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      Last modified: 19 Oct 2020QC 57641