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  • Interim Findings Report Top 100 Program (income tax) July 2019

    You can download the report Interim Findings Report Top 100 Program (income tax) July 2019 (PDF 571KB)This link will download a file

    We are publishing our key findings from 80 tax assurance reviews which have been issued to help taxpayers understand how we apply the justified trust methodology to obtain greater assurance that large public and multinational taxpayers are paying the right amount of income tax or identify areas of tax risk for further action.

    Top 100 engagement

    The Top 100 population consists of public and multinational businesses and superfunds that have substantial economic activity related to Australia. They form the largest contributors to corporate income tax, good and services tax (GST), excise, and petroleum resource rent tax (PRRT) collections. The largest 100 corporate groups reported $30.9 billion or 42% of all corporate income tax for the 2016–17 income tax year.

    As the Top 100 can have a significant impact on the health of our tax system, we engage with them one-to-one to manage their compliance and assure their tax performance.

    Top 100 taxpayers are initially identified based on the size of their Australian operations. Other factors we consider include income tax, GST or excise paid and the influence the taxpayer may have on their market segment. We review and moderate the Top 100 population annually.

    Our approach

    Justified trust is a concept from the Organisation for Economic Cooperation and Development (OECD).

    The ATO introduced the justified trust concept starting with the Top 100 population in 2016. We have now completed and issued many of the first year tax assurance reports (TARs) for income tax.

    The justified trust concept has expanded to GST for the Top 100 population.

    We apply the justified trust methodology and seek to obtain assurance of the following four focus areas:

    • that appropriate tax risk and governance frameworks exist and are applied in practice
    • that none of the specific tax risks we have flagged to the market are present
    • the tax outcomes of atypical, new or large transactions are appropriate
    • any misalignment between tax and accounting results is explainable and appropriate and the right amount of tax on profit from Australian-linked businesses is being recognised in Australia.

    This paper outlines our findings in respect of the four justified trust focus areas for income tax.

      Last modified: 22 Nov 2019QC 60702