In 2018–19, 241 entities from the 2017–18 corporate transparency population (including 56 Australian public, 125 foreign-owned entities and 60 Australian private) were no longer in scope. We analyse these entities to ensure that:
- exits are for legitimate reasons
- they are not manipulating their income tax returns to fall outside the corporate transparency measure.
Reasons for exits from the transparency population this year are:
- 142 reported income levels below the transparency thresholds
- 61 joined a consolidated group during the year (income earned after joining was reported by their head corporation)
- 37 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 2020). These entities are contacted as part of our non lodgment program and may appear in a later year report (following lodgment)
- one was not required to lodge a company tax return due to deregistration.
The number of entities that exited the transparency population in 2018–19 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 12. Exits by reason are also shown in Figure 13 for Australian public entities, Figure 14 for foreign-owned entities and Figure 15 for Australian private entities.
Figure 12: Exits from the corporate transparency population – entire population
Figure 13: Exits from the corporate transparency population – Australian public entities
Figure 14: Exits from the corporate transparency population – foreign-owned entities
Figure 15: Exits from the corporate transparency population – Australian private entities