Large business focus 2015-16
Large business plays an important role in the tax system, including paying and withholding significant amounts of tax.
We know most large businesses comply by lodging their returns and paying the taxes they are required to under Australia’s law. We are committed to supporting these businesses with tailored services and by making it easier to comply.
We will work with large businesses to focus on:
- tax governance - minimising compliance risks through good governance
- transparency - working together to get things right and provide community confidence that large business is paying their fair share of tax
- early and cooperative engagement - prevention before correction; promoting early engagement on issues so we can provide certainty on tax treatment
- increased guidance - helping business to 'get it right'.
There are, however, inherent risks in the large market due to complex law, uncertainties around the law and opportunities for global tax planning.
In 2015-16, our focus for large business will be on the following behaviours, choices, transactions and issues:
- integrity of business systems for GST
- GST compliance on property transactions
- financial supplies apportionment for GST
- compliance with new measures effective from 1 July 2017 for GST on imported low-value goods and digital products and services
- GST on cross-border transactions
- compliance with excise, wine equalisation tax and luxury car tax obligations
- internationals and profit shifting, particularly the application of thin capitalisation rules, offshore hub arrangements and cross border related party financing arrangements
- trust schemes and arrangements that seek to minimise tax
- restructure events
- complex structures used by wealthy individuals and their private groups
- research and development claims
- correct application of the consolidation regime
- exploration expenditure deductions
- bank branch attribution
- privatisations and public infrastructure transactions.
ATO's large business focus 2015-16
Our specific areas of focus for large businesses with over $250 million annual turnover for 2015-16