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  • Corporate tax transparency

    We have a legislative duty to report information about certain corporate tax entities under section 3C of the Taxation Administration Act 1953 and do this annually through the Report of entity tax information.

    Data within the Report of entity tax information is taken directly from tax returns and does not reflect any intervention or compliance work after lodgment of the returns. For example, it does not include amended assessments issued following audits or settlements relating to prior-year matters as they generally occur during an ATO review or audit process. The report data will always contain information supplied two years prior to its publication date.

    We have released our estimate of the large corporate groups income tax gap for 2015–16 and the petroleum resource rent tax (PRRT) gap for the first time. We've also updated our Tax and Corporate Australia publication (TACA), which outlines our approach to assuring compliance across the large market. Our approach includes a range of initiatives that enhance existing compliance programs and increase our capacity to identify and prevent tax evasion and tax avoidance.

    There are differences in the population and income years referenced between the most recent versions of the report of entity tax information, TACA, the large corporate groups income tax gap and the PRRT gap. These differences are summarised in the table below.

    Differences in population and income years referenced between various products

    Product

    Population

    How data is reported

    Income year

    Report of entity tax information

    • Australian public and foreign-owned entities with total income of $100 million or more
    • Australian-owned resident private entities with total income of $200 million or more
    • Entities that have PRRT payable
     

    Entity level

    2016–17

    Tax and Corporate Australia

    Corporate groups with turnover of $250 million or more

    Economic group level

    2016–17

    Large corporate groups income tax gap

    Corporate groups with turnover of $250 million or more

    Economic group level

    2015–16

    PRRT gap

    Petroleum and resource entities

    Entity level

    2015–16

    The multinational anti-avoidance law (MAAL) was implemented on 1 January 2016. The tax effects of the MAAL are starting to become apparent in tax returns (and transparency information) from the 2016–17 income year for companies that have restructured in response to the MAAL. Already in the 2016–17 income year, a transitional year, $2.5 billion of sales income has been reported. In subsequent years, this jumps to approximately $7 billion or more of additional sales each year.

    The diverted profits tax came into effect on 1 July 2017. While we anticipate this will result in restructuring and increased allocation of profits to Australia by affected taxpayers, the first possible affected year will be 2017–18 and the effects will be less obvious in the reported information.

    See also:

    Transparency reports and contextual analysis:

    Information on private groups:

    Last modified: 13 Dec 2018QC 54027