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  • Exits

    In 2015–16, 210 entities from the 2014–15 corporate transparency population (including 52 Australian private, 52 Australian public and 106 foreign-owned entities) were no longer in scope. We analyse these entities to ensure that exits are for legitimate reasons and entities are not manipulating their income tax returns to fall outside the corporate transparency measure. Of these exits from the transparency population:

    • 132 reported income levels below the transparency thresholds
    • 57 joined a consolidated group during the year (so, income earned after joining was reported by their head company)
    • 10 were not required to lodge a company tax return due to various other reasons – for example, deregistration
    • 11 had not yet lodged, or had lodged a company tax return that was not processed by the cut-off date for the report (1 September 2017).

    The number of entities that exited the transparency population in 2015–16 due to a drop in income is consistent with a normal level of churn in the population over recent years, including years prior to the first corporate tax transparency report.

    The headline results are summarised in Figure 4. Exits by reason are also shown in Figure 5 for Australian private groups, Figure 6 for Australian public entities and Figure 7 for foreign-owned entities.

    Figure 4: Exits from the corporate transparency population – entire population

    In 2015–16, 210 entities from 2014–15 were no longer in scope for the transparency report. Of these, 132 reported income below the income thresholds, 57 joined a consolidated group, 10 were not required to lodge for other known reasons, and 11 had not yet lodged, lodged late or were not yet processed.

    Figure 5: Exits from the corporate transparency population – Australian private entities

    In 2015–16, 52 Australian private entities from 2014–15 were no longer in scope for the transparency report. Of these, 34 reported income below the income thresholds, 15 joined a consolidated group, 1 was not required to lodge for other known reasons, and 2 had not yet lodged, lodged late or were not yet processed.

      Figure 6: Exits from the corporate transparency population – Australian public entities

    In 2015–16, 52 Australian public entities from 2014–15 were no longer in scope for the transparency report. Of these, 27 reported income below the income thresholds, 20 joined a consolidated group, 4 were not required to lodge for other known reasons, and 1 had not yet lodged, lodged late or was not yet processed.

    Figure 7: Exits from the corporate transparency population – foreign-owned entities

    In 2015–16, 106 foreign-owned entities from 2014–15 were no longer in scope for the transparency report. Of these, 71 reported income below the income thresholds, 22 joined a consolidated group, 5 were not required to lodge for other known reasons, and 8 had not yet lodged, lodged late or were not yet processed.

      Last modified: 05 Dec 2018QC 54026