• Confidence that large corporate groups are paying the right amount of tax

    Our new publication Tax and Corporate Australia talks about the tax performance of large corporate groups. It provides confidence the majority voluntarily pay the right amount of tax.

    While the population of large corporate groups in Australia is small, at around 1,400 groups, they voluntarily paid $41 billion in corporate income tax in the 2014–15 financial year. This represents a significant contribution to our tax system and the Australian economy.

    Included in Tax and Corporate Australia is the large corporate groups income tax gap. The tax gap is an estimate of the difference between the tax payable according to the law, and the amount of tax actually paid. The estimated size of the gap, at $2.5 billion or 5.8% in the 2014–15 fiscal year, reflects a tax system that is operating well. It demonstrates a high degree of voluntary compliance, and compares well globally. For example, with the United Kingdom, which has an estimated gap of approximately 5–6% for its large business segment.

    Our publication provides a ‘whole picture’ view of the complexity of corporate tax. It covers ways we are improving the system for those who want to comply and how we take firm action against those who choose not to.

    We will continue our efforts to sustainably reduce the tax gap through initiatives under the Tax Avoidance Taskforce. This includes implementing new legislative measures such as the Multinational Anti-Avoidance Law (MAAL) and Diverted Profits Tax (DPT).

    Next steps:

      Last modified: 11 Oct 2017QC 53324